Romanian Retailer Flamingo Files For Bankruptcy

Romanian IT&C retailer Flamingo filed for bankruptcy after one of it’s creditors, ING Bank, started Wednesday the foreclosure of certain inventories of the company.

                   

Early-November, the retailer signed a Memorandum of Understanding with ING Bank Romania, to restructure a EUR17.5 million loan, which was the first stage of the company's restructuring plan. "Despite intense efforts, the negotiations with ING failed, as Flamingo's request for a supplementary debt reduction was refused, and the bank decided to start today the foreclosure of stocks in certain stores," Flamingo International deputy general manager Adrian Olteanu said.

 

Flamingo International was established 15 years ago and is one of the major players with over 80 stores countrywide. The retailer reported a consolidated turnover of RON269.1 million in the first nine months, down 48% compared with the similar period a year earlier. The companies losses in the analyzed period stood at RON62.4 million, significantly wider than RON14.8 million in the same period of 2008.