The sales could therefore exceed EUR150 million, after having reached about EUR130 million last year, according to ZF’s calculations. Violeta Luca did not provide any details about the 2012 financial results, merely saying the performance was better than the market’s.
“We will not resume decline again. We’ve bottomed out,” Flanco’s CEO says. She believes the economy is more stable and the consumers are more optimistic now, which indicates an upward trend of the market.
Flanco’s sales were badly hurt by the crisis, halving at the end of 2009 compared with the 2008 level. In December of the same year the retailer filed for insolvency on EUR60 million debt.
Flanco, one of the largest companies in Romania that went through insolvency, entered a “new age” in 2010, when it became connected to Iulian Stanciu, one of the eMag founders, who appointed 33-year old Violeta Luca CEO last summer.
“Insolvency ended in June 2011,” says Violeta Luca.
The healthy assets were moved to Flanco Retail, which today operates the retail chain.
“We restructured the network in 2010 and 2011,” Violeta Luca said commenting on the current state of the company.
Flanco expects 20% increase in revenue in 2013 and plans to continue expansion. It currently has 78 stores and has already signed contracts for new ones in Bucharest and Ploesti and is talks for more stores in Cluj, Vaslui, Focsani and Timisoara.
(English version by Loredana Fratila-Cristescu)