Leonardo Resumes Expansion Two Years After Entering Insolvency

05.06.2011 ZF English

Leonardo, the biggest retailer of footwear and leather products in Romania, which went insolvent in the second part of 2009, with EUR100 million in debts, is resuming expansion, having opened its first store in Bucharest's Bucur Obor complex.

A further three stores could be opened this year.

"The store was opened on April 22nd following a EUR20,000 investment, which is the cost of the furniture. The space where we opened the store, located on the ground floor of Bucur Obor complex, very close to the Altex store, was already set up," said representatives of Casa de Insolvenţă Transilvania insolvency firm (CITR), in charge of Leonardo's judicial reorganisation.

Leonardo has already sealed three other contracts for stores, which are set to open in Unirea Shopping Center Bucharest, in Maritimo Mall Constanţa (October) and in Electroputere Mall Craiova (November).

The Unirea Shopping Center store will cover a 2,000 square-metre area on the second floor of the shopping centre and will be an outlet store. Leonardo holds another store in the shopping centre, but CITR representatives say the two will have different target audiences.

This is one of the few cases of good news coming from insolvent companies.

At the opposite end, Fashion Retail Group (FRG), held by Octavian Radu, which posted EUR15.7 million in turnover in 2009 with more than ten fashion brands, was declared bankrupt after the creditors' vote. The company's debts amount to EUR9.3 million.