Debt load to suppliers pushes Pic hypermarkets into insolvency

Retail group Pic, held by Penescu brothers, is subject to insolvency proceedings, due to the outstanding debt the group owes to creditors and the 30% decline in sales.

“The biggest share of the debt is to suppliers. Pic has made this decision following a severe decline in demand in the local market and a 30% drop in sales”, Claudia Rusu (photo) marketing director of Pic hypermarkets said in a release.

Since the beginning of the insolvency proceedings, all legal actions for the recovery of accounts receivables against debtor and his possessions are suspended.

“For the time being, Pic’s management team is making efforts to find the best solutions for reorganization, based on the resumption of supply activity and partial sale of assets to write off the debt load”, Rusu added.

In the Jan-Jun period, Pic’s sales dropped 20% year-on-year. The most performing division in terms of sales was the retail.

The measures to improve efficiency that started a month ago included reduction in operating expenses (fuel, electricity, equipment, marketing), and payroll cut, as 1,500 employees of 4,000 headcount were laid off. The group operating in production, trade, and food products retailing has 2,500 employees, and half of them work at the five PIC stores in Pitesti, Craiova, Calarasi, Braila and Oradea.

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