Cyprus-Forum.com

[kurupetos]

That's probably why Zonk chose this alias.

yosemeti.jpg

OK you beat me!

[supporttheunderdog]

Back on topic, I read in Famagusta Gazette the big O had a Euro 17,7m loss for the first 9 months and are implementing a new business plan to include 5 stores to close a reduction in the number of suppliers and property disposals. I am not sure if the 5 closures are new or include the three which have gone in the Pafos area, one of which may well be down to a Lidl (and other new entrants) just up the road. I hope it works.

[CBBB]

Its all gone tits up!

Into the banks for €140 million, suppliers €85 million, and various others €10 million.

http://www.sigmalive.com/inbusiness/news/retail/21018

[cyprusgrump]

Its all gone tits up!

Into the banks for €140 million, suppliers €85 million, and various others €10 million.

http://www.sigmalive.com/inbusiness/news/retail/21018

Holy shit!

[supporttheunderdog]

Its all gone tits up!

Into the banks for €140 million, suppliers €85 million, and various others €10 million.

http://www.sigmalive.com/inbusiness/news/retail/21018

Holy shit!

I bet a few suppliers have said that today....I feel very sorry for them as no doubt some will be forced to close, and for the staff at Orphanides.

[Sotos]

A new era for Orphanides

A GROUP of suppliers will be taking over control of a number of outlets belonging to Orphanides Supermarkets – the island’s biggest chain -- in a bid to keep the beleaguered company going, it emerged yesterday.

According to an announcement, suppliers would take over management of a number of outlets for a period of 10 years with a view to securing the supermarkets’ ability to meet their obligations.

They will also employ the chain’s workers under the same conditions.

“It is certainly a positive development in the sense that everyone’s effort is to keep this supermarket alive,” said Marios Tsiakkis, deputy secretary general of the chamber of commerce and industry.

The new entity, Orphanides New Era is viewed positively by the banks, the announcement said.

It is understood that banks have not given the go ahead yet and will not do so before scrutinising the figures and making sure the venture is viable.

The company owes some €140 million to the Bank of Cyprus and Popular and around €100 million to other creditors.

Some 1,250 people are on Orphanides’ payroll, while 2,000 more work on the supply end.

The closure of the island’s largest supermarket chain could translate into a €400 million loss for the economy, according to one estimate.

With the implementation of the agreement, the company said it hopes Orphanides Supermarkets would continue to provide consumers quality products at low prices for many years.

The new regime aims to gradually repay the old debts and respond to the outlets’ immediate obligations.

It is expected that the new scheme would yield enough profit to pay off the debt to creditors long before the 10 years expire.

The board will have seven members – four from the group of suppliers.

[cyprusgrump]

A new era for Orphanides

A GROUP of suppliers will be taking over control of a number of outlets belonging to Orphanides Supermarkets – the island’s biggest chain -- in a bid to keep the beleaguered company going, it emerged yesterday.

According to an announcement, suppliers would take over management of a number of outlets for a period of 10 years with a view to securing the supermarkets’ ability to meet their obligations.

They will also employ the chain’s workers under the same conditions.

“It is certainly a positive development in the sense that everyone’s effort is to keep this supermarket alive,” said Marios Tsiakkis, deputy secretary general of the chamber of commerce and industry.

The new entity, Orphanides New Era is viewed positively by the banks, the announcement said.

It is understood that banks have not given the go ahead yet and will not do so before scrutinising the figures and making sure the venture is viable.

The company owes some €140 million to the Bank of Cyprus and Popular and around €100 million to other creditors.

Some 1,250 people are on Orphanides’ payroll, while 2,000 more work on the supply end.

The closure of the island’s largest supermarket chain could translate into a €400 million loss for the economy, according to one estimate.

With the implementation of the agreement, the company said it hopes Orphanides Supermarkets would continue to provide consumers quality products at low prices for many years.

The new regime aims to gradually repay the old debts and respond to the outlets’ immediate obligations.

It is expected that the new scheme would yield enough profit to pay off the debt to creditors long before the 10 years expire.

The board will have seven members – four from the group of suppliers.

Good luck to them...

But why you would want to start your business owing hundreds of millions is beyond me...

[supporttheunderdog]

because for the suppliers they already own part of the debt and keeping it going and hopefully turning it around is the only way they can get their money back. That or any of them will go into a death dive.

I too say good luck to them.

[cyprusgrump]

because for the suppliers they already own part of the debt and keeping it going and hopefully turning it around is the only way they can get their money back. That or any of them will go into a death dive.

I too say good luck to them.

I understand the keenness to get their money back - but if I read the article correctly they have also taken on the debt owed to the bank...? Not a great starting point...

[supporttheunderdog]

that is true- but I really think many of them had no option - it was that or they too would go to wall.
As far as I know the banks have not yet agreed to the deal: even if they agree it could still in any event go belly-up. with all that would entail. The big question is did they get the land?

Lets just hope they can find a suitably profitable business model, particularly in today's cost cutting driven climate because few shoppers will support the big NEO out of philanthropic rer
reasons.