Is Octavian Radu preparing to close Diverta Magheru?

Octavian Radu, owner of insolvent bookstore chain Diverta, is preparing a back-up plan for the potential closure of the network's biggest store, Diverta Magheru, by renting 1,400 square metres in the same area, on the former location of the Princess casino, previously occupied by Trocadero restaurant. The restaurant has gone down in Bucharest's history as the meeting place of bankers and economists in the early 90s, with Mugur Isarescu and Eugen Dijmarescu, former vicegovernor of the NBR (National Bank of Romania) being clients of the restaurant. "The opening in August of the Diverta Academiei bookstore will ensure a back-up in case of a potential closure of the Magheru store. It remains to be seen how negotiations to cut rent will go," said Amalia Buliga, CEO of Diverta, which last year posted a 30 million-euro turnover. Diverta bookstores have been insolvent since May, after accumulating a 10 million-euro debt. Buliga also specified the investment in Diverta Academiei was minimal, considering the "acceptable" rent. By contrast, the 1,800 square-metre space on Magheru was the most expensive rental contract in the group's history, amid 1 million euros in rental guarantee costs.