The decision comes after the company has posted decline in revenue every year since 2019 and accumulated almost RON24 million losses. Finance Ministry data show it to have operated at a loss in eight of the last ten years (2013-2022), making profit in only two years.
The decision to file for insolvency is in response to “losses and one-off costs” due to the pandemic and is intended to help stabilize the company.
One of the best-known IT companies in Romania, Star Storage is fully owned by Catalin Paunescu, founder and CEO. He became the sole owner after having bought back the majority stake, 65%, from Emerging Europe Accession Fund (EEAF), which had acquired it in 2014.
Despite having returned to profit in 2022 and 2023, Star Storage was affected by legislative changes regarding taxes that rendered it unable to continue with a plan to repay rescheduled taxes due for 2020-2022, the company said.
(English version by Loredana Fratila-Cristescu)