Octavian Radu: Bankruptcy of the fashion company is a financial failure, only suppliers and me will lose money, not the banks

With two insolvent companies, TCE Logistică and Pro Express Retail, which operates the Diverta bookstore chain, and a fashion company whose creditors have recently voted the start of bankruptcy proceedings, owner Octavian Radu says he has "worked very hard" to rebalance the group and adjust it to the market situation.

"I did all I could for these companies, but I cannot control Romanians' purchasing power or the economic context. I am not in favour of Fashion Retail Group (FRG) entering bankruptcy proceedings," says Octavian Radu from his home office, where he works as a "consultant" for his own companies, having "handed over management," as he says.

In the case of one of the insolvent companies, Fashion Retail Group (FRG), which posted 15.7 million-euro turnover with ten fashion brands, creditors have recently voted in favour of bankruptcy. The company's debts amount to 9.3 million euros, with Alpha Bank alone having to recoup 5.2 million euros.

"I consider this bankruptcy to be not an intellectual failure, but a financial one, because both me and the suppliers will lose money. Banks will not lose anything because they have my land and buildings as guarantees. The only thing I have not pledged as collateral for bank loans is my home."