“We are working on a realistic restructuring plan, built on solid commercial basses, which entails improving efficiency of the company, restructuring the store chain and keeping the essential brands in the market. We are in constant communication with the Montecristo team and will propose steps to ensure operational continuity and protection of the economic value of the business,” said Mircea Somlea, partner of INFINEXA, the court-appointed trustee of Montecristo Retail RO.
On the local market for more than two decades, Montecristo was faced with a series of challenges due to the COVID-19 pandemic, followed by high inflation, significant increase in operating costs (rent, utilities, logistics) and decline in sales in some of the shopping centers it operates in.
Problems were compounded by a fast-paced consumer migration towards online platforms and change in their spending patterns, as consumers become more cautious and careful with their spending. At the same time, supply and transportation costs for the products increased, eating into the margins of the chain, the court-appointed trustee representatives say.
Montecristo should file a reorganization plan soon that should allow it to resume operations and sustainably relaunch the brand in the current economy.
It operates 71 stores under the three brands in Romania, according to the kvl.ro website. Its revenue has fluctuated over the last few years, as so has the number of employees. Its revenue went down to RON152 million in 2024, from RON166 million in 2023 and posted RON30 million net loss, Finance Ministry data show, The number of employees decreased from 345 in 2023 to 262 in 2024.
(English version by Loredana Fratila-Cristescu)