ZF called randomly 20 of the stores in the chain bought by Patriciu in mid 2010, and all have been closed down. “The store will never open again,” or “we don’t know when or if it will re-open,” or “we are doing inventory work and don’t known when we will open” were the answers received.
The chain’s website says there are 54 Minimax Discount stores. The company also owns four Macro stores – which were rebranded last year from Minimax Discount units. No data is available, though, on whether the latter are closed or not.
Company officials did not answer ZF’s request for information on the number of stores closed down and on the future plans for the Minimax and Mic.ro chains.
According to data obtained by ZF, the Minimax Discount stores closed down are those in Calan, Cisnadie, Bucharest, Rasnov, Mangalia, Urziceni, Sebes, Campulung, Tecuci, Braila, Sannicolau Mare, Arad, Targu Mures, Cluj Napoca, Alba Iulia (3), Turnu Magurele, Focsani and Buzau.
Why did they close down?
“The store has no merchandise, its doors are locked, only a few guards were inside,” says a buyer who went to the Urziceni store. Other stores have their doors open only for customers of City Life pharmacies, which are located within several Minimax Discount stores, according to store employees who answered ZF’s questions.
“Currently we are consolidating our store networks, our aim is to boost efficiency of our operations and logistical chain and in the structure of our product ranges (…) All the changes that have occurred in our activity lately, including the closing of certain stores are part of this consolidation process,” has been the only answer given by Mercadia Holland, the company that operates the stores.
In September 2011, Patriciu, the owner of Mercadia Holland, told a news conference that 150 Minimax Discount and Macro stores would be operational at the end of 2012.
Over 20 insolvency petitions
Over 20 insolvency requests were filed with the Bucharest Court last year against Minimax Discount. Creditors include Romaqua Group (Borsec), Transilvania General Import-Export, Ocean Fish, Dorna Lactate, Dr. Oetker and Cafea Fortuna.
Some of these companies have withdrawn their insolvency petitions, but others are going ahead because they did not get their money back.
“We are going ahead with the court case because we have not received the money owed. We received promises that we would be paid, but we have yet to get the funds,” says Dan Lazarescu, general manager of Cafea Fortuna. He did not say how much the company had to collect from Minimax Discount.
Minimax Discount posted 277 million lei (EUR63.5 million) in turnover in 2010, up from RON191 million in the previous year. The store chain had loss of RON14.5 million (EUR3.3 million) in 2010, and, according to the website of the Finance Ministry, the company’s debts amounted to RON127 million at the end of the same year, almost half the turnover. Data for 2011 are not available yet.
How many Mic.ro stores are closed down?
Less then two years ago, two Mic.ro stores opened on Chisinau Boulevard in Bucharest. Today both are closed, lights are off and shelves are empty.
These are not the only stores closed down by Mercadia, but company representatives do not provide information on the number of Mic.ro stores closed down. Currently, there are some 600 Mic.ro stores. (EUR1=RON4.3627)
(English version by Daniela Stoican)