17/12/2012 10:45
Orphanides Supermarkets, which suspended the operation of ten supermarkets today due to a shortage in products, sent a dramatic SOS to its creditors.
Speaking to StockWatch, General Manager of the company, Constantinos Ioannou noted that the delay in making decisions about its support brought it just one step away from full suspension of its operation.
According to Mr. Ioannou, ten super markets suspended their operations today due to shortage in supplies, while 11 are still running.
The supermarkets that have suspended their operation are the former Philips in Paphos, the supermarket in Zakaki, Petrou and Pavlou in Limassol Ormideia, Kleitos and Othello in Larnaca and supermarkets in Anthoupoli, Geri, Paliometocho and Agiou Pavlou in Nicosia.
"Their operation was suspended since they had no products to sell and their operation was aimless”, Mr. Ioannou said.
"The company is just one step before the final closing and we are waiting desperately from the banks to make their own decisions as to whether an administrator will be appointed or not or whether they will support the company or not”, he added.
The Company’s support will be discussed by the banks in the afternoon.
Orphanides announced on December 13 that it will appoint Andreas Andronikou as administrator to reverse its course. The appointment must be ratified by the banks, to which the largest supermarket chain owes more than €150 million.
The company also has debts of €85 million to trade and other creditors, who will remain exposed to losses of millions if it goes bankrupt.
Orphanides had a turnover of close to €200 million, which fell dramatically this year due to competition and problems with its suppliers.
In the business plan prepared in October, the company hopes to reduce losses from €11 million that it expected to €2 million.
At a meeting of the banks on Friday, no decision was taken on the ratification of the appointment of the receiver and the support of the company since there are serious concerns about whether the injection of liquidity required by the bank is enough to reverse the situation.
With the argument that is too big to fail, the company hopes to gain the support of the banks so as to be able to sell assets (real estate), its trading activities or both.
Orphanides has is at its disposal properties of €340 million.
Speaking to StockWatch, General Manager of the company, Constantinos Ioannou noted that the delay in making decisions about its support brought it just one step away from full suspension of its operation.
According to Mr. Ioannou, ten super markets suspended their operations today due to shortage in supplies, while 11 are still running.
The supermarkets that have suspended their operation are the former Philips in Paphos, the supermarket in Zakaki, Petrou and Pavlou in Limassol Ormideia, Kleitos and Othello in Larnaca and supermarkets in Anthoupoli, Geri, Paliometocho and Agiou Pavlou in Nicosia.
"Their operation was suspended since they had no products to sell and their operation was aimless”, Mr. Ioannou said.
"The company is just one step before the final closing and we are waiting desperately from the banks to make their own decisions as to whether an administrator will be appointed or not or whether they will support the company or not”, he added.
The Company’s support will be discussed by the banks in the afternoon.
Orphanides announced on December 13 that it will appoint Andreas Andronikou as administrator to reverse its course. The appointment must be ratified by the banks, to which the largest supermarket chain owes more than €150 million.
The company also has debts of €85 million to trade and other creditors, who will remain exposed to losses of millions if it goes bankrupt.
Orphanides had a turnover of close to €200 million, which fell dramatically this year due to competition and problems with its suppliers.
In the business plan prepared in October, the company hopes to reduce losses from €11 million that it expected to €2 million.
At a meeting of the banks on Friday, no decision was taken on the ratification of the appointment of the receiver and the support of the company since there are serious concerns about whether the injection of liquidity required by the bank is enough to reverse the situation.
With the argument that is too big to fail, the company hopes to gain the support of the banks so as to be able to sell assets (real estate), its trading activities or both.
Orphanides has is at its disposal properties of €340 million.
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