Diverta gives up 20% of retail space and shuts down 12 bookstores

Diverta, a major book distributor, under insolvency, has closed eight stores. The retailer owned by businessman Octavian Radu plans to shut down another four bookstores by yearend, including the one on Bucharest's Magheru Boulevard, cutting down its retail area by 20%.
"In the wake of closing these unprofitable stores, we will reduce costs by 1m euros annually. Also, we've managed to save 1m euros from rents paid to the malls we have stores in," stated Amalia Buliga, general manager of Diverta bookstore chain.
After closing down the eight stores, Diverta currently operates 54 units on the Romanian market, and by yearend will reach 50 bookstores, namely a total retail area of 18,000 square metres. Moreover, Amalia Buliga is considering shutting down another 10 bookstores in the country.
In the wake of these steps, only 300 people will work in bookstores, from 420 last year, according to the retailer's representatives.
In the first half, Diverta reached 11m-euro turnover, down 20% from a year ago and operating losses of 250,000 euros.
"The biggest sales are registered starting September and this is why we expect to reach 23m-euro turnover by yearend and 400,000-euro profit, at best".