One of Octavian Radu's apparel retail companies to go bankrupt leaving 9m-euro debt behind

Fashion Retail Group (FRG), the company owned by businessman Octavian Radu, which managed over ten fashion brands with 15.7m-euro turnover in 2009, is set to enter bankruptcy, after lenders approved the start of such proceedings, and Alpha Bank and another 40 creditors have few chances or recouping 9.3m euros.

In 2009, FRG had a portfolio of at least ten brands, including Aldo, Debenhams, Mandarina Duck, Kipling, Olsen, Roeckl, Fratelli Rosetti or Sacoor Brothers, but at the moment it entered insolvency (July 2010), Aldo and Debenhams were no longer registered on this company, so that they are not involved in the bankruptcy. As a matter of fact, FRG no longer operates any store and has given up the franchise for brands such as Olsen or Mandarina Duck.

"Creditors voted for the start of bankruptcy proceedings, as the company stands no reorganisation chances. The proceedings will be opened at the next hearing, in September," lawyer Vasile Godâncă, senior partner with Casa de Insolvenţă Transilvania (CITR), FRG's legal administrator, told ZF.