Leading Greek retailer, Marinopoulos, which filed for bankruptcy protection earlier this year, has been rescued in a deal from competitor Sklavenitis, which will make Sklavenitis one of the country's leading retailers.
Debt reduction on acquisition
Marinopoulos owe debts of around €1.3bn, around half of which is owed to suppliers, while the rest is owed to lenders and employees. As part of the acquisition, the debt that Marinopoulos owes its suppliers will be reportedly reduced by between 40 and 50%.
Despite the challenging economic backdrop in Greece, Sklavenitis achieved sales growth of 40.8% in 2015, partly driven by the acquisition of Mart Cash & Carry.
Lidl introduces new concept
Elsewhere in the Greek market, competitor Lidl has introduced its new store concept in Thessaloniki, as seen elsewhere in Europe.
Lidl: new generation stores cost 166% more than conventional formats
Commenting on the development, chairman of Lidl Hellas, James Andreanidis said, ‘the total cost of construction of a new generation of stores reaches almost 1/4 of total annual investment. The cost of each new generation store is around €4 million while the cost of a conventional store has cost just €1.5m’.
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