Diverta, a major book distributor, under insolvency, has closedeight stores. The retailer owned by businessman Octavian Radu plansto shut down another four bookstores by yearend, including the oneon Bucharest's Magheru Boulevard, cutting down its retail area by20%.
"In the wake of closing these unprofitable stores, we will reducecosts by 1m euros annually. Also, we've managed to save 1m eurosfrom rents paid to the malls we have stores in," stated AmaliaBuliga, general manager of Diverta bookstore chain.
After closing down the eight stores, Diverta currently operates 54units on the Romanian market, and by yearend will reach 50bookstores, namely a total retail area of 18,000 square metres.Moreover, Amalia Buliga is considering shutting down another 10bookstores in the country.
In the wake of these steps, only 300 people will work inbookstores, from 420 last year, according to the retailer'srepresentatives.
In the first half, Diverta reached 11m-euro turnover, down 20% froma year ago and operating losses of 250,000 euros.
"The biggest sales are registered starting September and this iswhy we expect to reach 23m-euro turnover by yearend and400,000-euro profit, at best".
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