30/01/2013 09:55
Orphanides Super Markets seem to be losing the battle for survival and the various market players are already planning the next day.
The collapse of the largest supermarket chain in Cyprus - which until 2011 had a turnover of €200 million – finds the players of the industry to plan the next steps.
Creditors are expected to appoint a receiver within the next few days, vendors count their losses and competitors are fully mobilized to get the largest possible share in Orphanides.
The New Era…that never comes
Chances to make the effort feasible of the 52 suppliers to create a new company called Orphanides New Era seems to negate. The original deadline for participation in the group has expired without the participation of major suppliers.
The participants suppliers - partly derived from the primary sector of catering - hope that the administrator will accept their proposal for renting and operating 16 supermarkets, a proposal Orphanides itself agrees.
The company owes €85 million to trade and other creditors.
Creditors
The creditors of the supermarkets, especially Cyprus Popular Bank that seems to have an exposure of more than €100 million to Orphanides, proceeds with the appointment of a receiver slowly.
In retail trade, the pace at which developments are running causes various reactions and complicates efforts to resolve the major issues arising from the company’s bankruptcy.
The suppliers
Ahead of the creditors’ and the courts’ moves for the recipient, suppliers count their losses. Some will be forced to put a padlock from their large exposure to the supermarket while for others it will take time to recover. Some of the biggest suppliers managed to limit their exposure to the supermarket promptly.
According to sources, all suppliers who stand still, see positively the appointment of the receiver, as the quantity of products supplying the supermarkets has not been lost from the market as it is now absorbed by other supermarkets.
Indeed, the distribution became easier for suppliers and with less risk, after the suspension of 19 Orphanides supermarket. Currently, only ten supermarkets are underperforming nationwide.
The competitors
As for the competitors, they move simultaneously in two directions: to attract the clientele of Orphanides supermarkets and to acquire supermarkets that will strengthen their presence.
The largest part of the turnover of €170 million that Orphanides was estimated to have in 2012 has been already shared among the major competitors such as Alfa Mega, Carrefour and Lidl.
A significant share of Orphanides’ clientele seems to seem to have been gained Metro, mainly in Larnaca.
A for the “fillets", there seems to be interest in Orphanides supermarket in Paralimni and in Larnaca. There is also interest in smaller supermarkets that seem to fit the profile of specific players in the market.
Buyers wish at the moment to lease the supermarkets but creditors are expected to push for their acquisition.
The collapse of the largest supermarket chain in Cyprus - which until 2011 had a turnover of €200 million – finds the players of the industry to plan the next steps.
Creditors are expected to appoint a receiver within the next few days, vendors count their losses and competitors are fully mobilized to get the largest possible share in Orphanides.
The New Era…that never comes
Chances to make the effort feasible of the 52 suppliers to create a new company called Orphanides New Era seems to negate. The original deadline for participation in the group has expired without the participation of major suppliers.
The participants suppliers - partly derived from the primary sector of catering - hope that the administrator will accept their proposal for renting and operating 16 supermarkets, a proposal Orphanides itself agrees.
The company owes €85 million to trade and other creditors.
Creditors
The creditors of the supermarkets, especially Cyprus Popular Bank that seems to have an exposure of more than €100 million to Orphanides, proceeds with the appointment of a receiver slowly.
In retail trade, the pace at which developments are running causes various reactions and complicates efforts to resolve the major issues arising from the company’s bankruptcy.
The suppliers
Ahead of the creditors’ and the courts’ moves for the recipient, suppliers count their losses. Some will be forced to put a padlock from their large exposure to the supermarket while for others it will take time to recover. Some of the biggest suppliers managed to limit their exposure to the supermarket promptly.
According to sources, all suppliers who stand still, see positively the appointment of the receiver, as the quantity of products supplying the supermarkets has not been lost from the market as it is now absorbed by other supermarkets.
Indeed, the distribution became easier for suppliers and with less risk, after the suspension of 19 Orphanides supermarket. Currently, only ten supermarkets are underperforming nationwide.
The competitors
As for the competitors, they move simultaneously in two directions: to attract the clientele of Orphanides supermarkets and to acquire supermarkets that will strengthen their presence.
The largest part of the turnover of €170 million that Orphanides was estimated to have in 2012 has been already shared among the major competitors such as Alfa Mega, Carrefour and Lidl.
A significant share of Orphanides’ clientele seems to seem to have been gained Metro, mainly in Larnaca.
A for the “fillets", there seems to be interest in Orphanides supermarket in Paralimni and in Larnaca. There is also interest in smaller supermarkets that seem to fit the profile of specific players in the market.
Buyers wish at the moment to lease the supermarkets but creditors are expected to push for their acquisition.
Related Articles
