“Yes, we’ve exited for good (from the Debenhams business). I can name three causes (for that). The first is the crisis that eroded the purchasing power. Then malls doubled floor space in 2008-2012 and last but not least, extremely competitive brands like Zara and H&M have developed aggressively over the last couple of years,” Octavian Radu says.
He added he made the decision to withdraw last December; the stores still open on the local market, in Plaza Romania and Bucuresti Mall, would be closed soon.
“We could have effortlessly dealt with each of the aforementioned problems separately, would have had a bit of trouble dealing with two but dealing with all three at once was impossible.”
Octavian Radu’s fashion business included brands like Aldo, Debenhams, Mandarina Duck, Kipling, Olsen and Bally during the boom days and saw the first signs of trouble in 2009. Debenhams is, according to ZF data, the last fashion brand he had after having closed all the other stores.
Debenhams generated almost EUR8 million revenue from a four-store network in 2011, according to the latest data available.
Before deciding to leave fashion retail, Octavian Radu had also exited the restaurant, coffee shop and stationery business.
He now only has logistics and courier service business and bookstores.
(English version by Loredana Fratila-Cristescu)