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

Autor: Mirabela Tiron

11.04.2011, 23:47 19

With two insolvent companies, TCE Logistică and Pro ExpressRetail, which operates the Diverta bookstore chain, and a fashioncompany whose creditors have recently voted the start of bankruptcyproceedings, owner Octavian Radu says he has "worked very hard" torebalance the group and adjust it to the market situation.

"I did all I could for these companies, but I cannot controlRomanians' purchasing power or the economic context. I am not infavour of Fashion Retail Group (FRG) entering bankruptcyproceedings," says Octavian Radu from his home office, where heworks as a "consultant" for his own companies, having "handed overmanagement," as he says.

In the case of one of the insolvent companies, Fashion RetailGroup (FRG), which posted 15.7 million-euro turnover with tenfashion brands, creditors have recently voted in favour ofbankruptcy. The company's debts amount to 9.3 million euros, withAlpha 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 losemoney. Banks will not lose anything because they have my land andbuildings as guarantees. The only thing I have not pledged ascollateral for bank loans is my home."

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