Dragos Cinca, founder of electronics and home appliancesretailer Flamingo, handed over the company's management to theAdamescu family fifteen years after founding it, and now plans toexit the business completely in 2011.
"I will ponder this matter, having set myself 2011 as adeadline. Until then we need to have suitable people to handle thecompany and I trust the company's new leadership and Mr. Adamescu,"said Cinca.
However, for the time being, the shareholders are more involvedin management than in previous years, after they had to renegotiatecontracts with partners personally.
"The extent of the crisis was partly accountable for this. Themanagement worked, but the negotiating power moved to banks,shareholders, and retail space developers," he explained.
Cinca, Dan Adamescu and Alexandru Tiriac hold over 70% ofFlamingo shares.
After recording a 45% sales decline over the last few months andover 5 million euros in losses, Flamingo is struggling to breathewith the aid of the refinancing plan put together by itsshareholders, which entails a 7 million-euro bond issue and helpfrom partner banks. "Banks committed in writing to contribute 10million euros to the financing plan, in addition to the 7 millioneuros of the shareholders."
Dragos Cinca says he left the company's management in the handsof the Adamescu family because he wants to become involved in otherprojects, after being active in the restructuring of theelectronics and home appliances retailer over the last fewmonths.
Dragos Cinca, Dan Adamescu and Alexandru Tiriac, the mainshareholders of Flamingo International (FLA) have set a 15%increase target for the company's turnover in 2010, after thecompany lost millions of euros and posted a 40% sales decline inthe first half of this year.
Although Cinca boosted his stake by 1.6% to 27.2% last week, andDan Adamescu appointed his son as president of the company after acompany based in the Unirea store (Midfair Management) took over a22% stake from the QVT fund, shareholders say there will not be arace for control of the company after next month's bond issue.
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