The company has faced various problems. These came to light after the arrest of Bartolome Cursach at the end of February 2017 (he is now out on bail). The first ones were with Pacha and Tito's in Palma. The latter was closed for a time by order of the town hall, while the Pacha Group withdrew the franchise for the name; the Cursach Group, in turn, scrapped the licence it had for the premises.
Calvia town hall then ordered the closure of BCM in Magalluf; it has now reopened. Subsequently, Palma town hall took an interest in Megapark (Arenal) and Megasport. Megapark is currently partially closed and Megasport is completely closed but is due to reopen in the autumn. Megapark is expected to be fully open once the company has complied with town hall planning requirements.
The group filed for pre-insolvency on 9 March. The procedure allows a total of four months before formal insolvency has to be requested.
Meanwhile, a different problem has emerged, with the National Police accusing the Cursach Group of having defrauded the tax agency of 51 million euros and social security of a further 14.7 million.
