Businessman Octavian Radu has filed for Diverta retailerinsolvency with a view to its judicial reorganisation, according tothe company's representatives. "Diverta's debts top 10m euros andthis is why we chose to go in judicial reorganisation. The currentconditions of the economy and the inflexibility of developers (i.e.the shopping centres where Diverta has stores opened) have givenrise to the current cash flow problems," stated Amalia Buliga,Diverta CEO.
The court-appointed administrator will be Casa de InsolventaTransilvania (Transylvania Insolvency Firm).
Diverta's owner, Octavian Radu, explained that some stores hadstarted to "eat" more than they yielded (gross margin), which ledto debts to suppliers and developers and payment problems. "Thecrisis and the dwindling number of clients that bought productsconflicted with spending, which could not be reduced despite ourefforts," Radu said.
Diverta network, a major book distributor on the Romanianmarket, ended last year with 30m-euro turnover, down 37% from 2008.EBITDA was negative, reaching 600,000 euros.
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