IT&C and electronics retailer Flanco hopes to exit insolvency after filing a legal reorganization plan at the Bucharest Court which could be approved by the Lenders’ General Meeting and validated by a judge by late September.
After 21 consecutive months of negative results, the company reached breakeven in June. In June and July, its market share surpassed the figure registered in June 2009, in spite of a declining market and the VAT hike, said company representatives.
“Over 2010 Flanco has once more become a sound business. The drastic restructuring measures that we have implemented over the past seven months have rapidly started to generate positive effects. Sales are increasing on a monthly basis as is our number of customers,” said Adrian Olteanu, Flanco CEO.
After filing for insolvency in December 2009, the retailer underwent a restructuring plan that included measures such as optimizing its cost structure, new marketing and sales campaigns and the launch of new services. In 2011, the company estimates that it will reach a 10 percent market share and a EUR 110 million turnover.
In May, Flanco representatives announced that the company was on the lookout for an investor to take over the majority stake.
Simona Bazavan