Liberty Puerto Rico to close stores, urge voluntary resignations

By The Star Staff

Communications company Liberty announced the closure of stores in Puerto Rico as part of a “restructuring process.”

A document leaked on social media Wednesday indicates that the measures include a program of voluntary resignations and possible additional layoffs.

Liberty says in the document that “unfortunately, some Retail Sales Consultants will leave the company. It has been determined to give the opportunity for voluntary separations. Employees interested in opting for voluntary separation should submit their request (by Wednesday)’’.

The STAR reported on Aug. 12 that Liberty Communications Puerto Rico, facing a decline in revenue, was seeing its creditors take action, as the company was preparing for significant strategic changes.

According to sources, Liberty Communications engaged Ropes & Gray as legal counsel and Moelis as its financial adviser. With reportedly around $2.8 billion in debt, the company has spurred the formation of creditor groups, with Akin Gump and Evercore representing one ad hoc group, and Glenn Agre representing another, as reported by sources. Liberty has not yet confirmed the information.

During its second quarter 2025 earnings presentation earlier in August, Liberty announced its intention to pursue a liability management transaction, aimed at leveraging select assets to address liquidity needs and enhance its capital structure. The strategic move is part of a broader plan to separate Puerto Rico operations from the Liberty Latin America parent company.

Liberty executives emphasize that the separation will unlock shareholder value and optimize capital structure. CEO Balan Nair said the separation could potentially take the form of a spin-off.

Despite experiencing a decline in revenue of 5% on a rebased basis during the second quarter, Liberty’s Puerto Rico and U.S. Virgin Islands unit managed to increase its adjusted operating income before depreciation and amortization by 22% year-over-year, totaling $87 million for the quarter and $168.5 million for the first half of the year. The growth in earnings before interest, taxes, depreciation and amortization can be attributed to disciplined cost management, achieved through reduced staffing, lower professional services costs, and the phase-out of integration expenses.