Sudanese-born businessman Joseph Seroussi, called the "king of apparel", has reshuffled the entire business he started before 1990, but has now reached a point where he can no longer assess his empire, reckoning nobody is interested in investing in textile production any longer.
"The business has value when there's demand. Currently, no investor is interested in buying. The market is down and orders are low," stated Joseph Seroussi, owner of J&R Enterprises company.
Seroussi's textile business has shrunk dramatically in recent years, particularly as regards the number of employees, which has dropped from 8,000 people in early 2007 to 5,500 at present. Moreover, the businessman now owns three textile factories instead of 5 previously, while in retail two stores have been closed.
On the textile market, very few were those who invested, acquiring production facilities, with the only deals being sealed domestically to boost production capacity. Investors have been more attracted by fashion retail, with TinaR domestic brand being closely analysed by investment funds.
As regards the economic downturn, Seroussi sees a rebound starting next year. According to him, the market will rebound within one year, a moment when exports will grow and companies will have to hire again.
On the retail market, the company currently owns three No.36 stores, in Plaza Romania, Bucuresti Mall and Calea Mosilor, with the latter one to be closed in mid-September. The store on the ground floor of America House office building was also closed, three months ago.
"We've made some people redundant in the wake of store closures, but we'll open a store in Militari area in September," explains Seroussi.
J&R Enterprises and the three factories of the company had cumulated turnover worth almost 32m euros in 2008 and 3,400 employees. Their owner says, though, that currently the number of employees amounts to 5,500.
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