The insolvency procedure was approved at the company’s request.
Elit Cugir is owned by entrepreneur Dorin Mateiu and had a profit of RON12 million (EUR2.7 million) last year, down from RON14 million (EUR3.1 million) in 2012. Its turnover also dropped in 2013, to RON317 million (EUR72 million) from RON343 (EUR77 million) in 2012.
According to Finance Ministry data, Elit Cugir had debts of RON42 million last year, lower than in 2012, and receivables of RON48.2 million.
Company officials could not be reached for comment.
Late 2013, Elit’s retail division, the Alba Market chain store, entered insolvency at the request of creditors.
The businessman behind Elit is also involved in the real estate and hotel business.
The Alba Court also received an insolvency request from Mercado, part of the Elit group, which trades frozen and refrigerates meat. The company had a turnover od RON76 million (EUR17 million) and a profit of RON3.5 million in 2013. Debts totaled RON3.7 million.
In 2013, Mateiu discarded plans to build a canned meat factory in the city of Alba Iulia, citing uncertain market conditions and low consumption.
Elit Cugir owns two meat processing factories, a slaughterhouse and farms, as well as storage areas in several cities in the country. Its main competitors are Caroli, CrisTim, Unicarm, Agricola Bacau, Angst, Fox, Transavia, and Aldis.