“2013 was the year of space reductions. We even halved the area of some bookstores located in Bucharest malls, Baneasa, Vitan, Plaza, and in Cluj for instance we relocated a unit from a 700-sqm area to a 300-sqm one. Overall, we shut down six units and opened two last year,” said Amalia Buliga, general manager of the chain controlled by businessman Octavian Radu.
The chain is now operated by Blor Retail, a company set up by Radu several years ago to carry out management consulting activities.
Trade Registry data show Blor Retail is owned by two companies registered in Nicosia (Foliteck Limited-as associate and Laronway Limited- as shareholder) and Pan Management Group of Bucharest-as associate.
Pro Expres Retail, the company Diverta sales have been booked on until recently, is undergoing bankruptcy proceedings.
Diverta ended last year with EUR11 million in sales, according to the company’s manager. The figures came as the retail area shrank to 8,000 square meters last year, compared from a 11,000-sqm area (in 30 bookstores) in 2012.
“EBITDA (earnings before interest, tax, depreciation and amortization) reached 100,000 euros, the first positive figure in the past five years. Revenue per square meter rose and rent charges fell,” said Amalia Buliga.
For this year, she expects sales to match last year’s and EBITDA to reach 300,000 euros.
Amalia Buliga did not give any details about the value of debts Pro Express Retail has paid so far.
Octavian Radu has tried to sell the chain several times, but has not come to an agreement with any investor.
(English version by Catalina Apostoiu)