“The plan is mostly geared towards restructuring the company’s activity regarding several aspects in order to overcome the temporary financial distress situation so as to offer the possibility of paying a reasonable amount of the debts included in the list of creditors affected and of viably reviving Vivre Deco’s business activity”, the report reads.
The restructuring measures proposed target changes in the sales model and the switch from the system of selling products from the own stock to the dropshipping system – supplier stock. Therefore, it is expected that, starting March 2023, approximately 70% of the company’s turnover will be generated by dropshipping and the remainder will come from selling the merchandise stocked up by the company.
The company will also focus on optimizing operating costs by reducing marketing costs by up to 90%, along with optimizing rental costs and reducing fixed costs.
Vivre will be assisted by PricewaterhouseCoopers Business Recovery Services throughout the agreement with creditors procedure. PricewaterhouseCoopers Business Recovery Services is the restructuring division of PwC Romania, specialized in providing sustainable transformation services and business restructuring.
Vivre Deco reported net loss of RON84.8 million in 2021 from a profit of RON7.4 million in 2020. Its operating income fell by 16.7% and its EBITDA resulted in a loss of RON72.7 million, from a profit of RON15.5 million in 2020.