Romanian distressed assets investor declares bankruptcy of its first project

17 March 2020

ROCA, a Romanian investment and management platform that invests in distressed companies, announced that its first project, shoemaker S-Karp, went bankrupt.

ROCA has invested EUR 2 mln in the project, according to ROCA CEO Rudi Vizental.

“Last year, S-Karp sold shoes worth EUR 1.2 million, but the business does not generate profit. I will say it bluntly: it is not worth producing shoes in Romania. Others do it in China, at much better prices and quality," Vizental said, quoted by Profit.ro.

When it entered the S-Karp shareholding, ROCA relied on the Made in Romania concept, namely quality footwear products at a competitive price, but increasing wages, increasing the price for utilities, lower productivity than in China or in other countries in Asia led to the company’s insolvency, according to the ROCA CEO.

The fund planned to sell the factory to another local shoe producer, Clujana, which is controlled by the local public administration in Cluj county, but the transaction didn’t go through.

The Clujana shoes factory successfully completed insolvency procedures in February this year, after it managed to repay RON 16 million (EUR 3.3 mln) debts to its creditors during the two-year insolvency procedures, according to Mediafax. 

(Photo: Kenishirotie/ Dreamstime)

editor@romania-insider.com

Normal

Romanian distressed assets investor declares bankruptcy of its first project

17 March 2020

ROCA, a Romanian investment and management platform that invests in distressed companies, announced that its first project, shoemaker S-Karp, went bankrupt.

ROCA has invested EUR 2 mln in the project, according to ROCA CEO Rudi Vizental.

“Last year, S-Karp sold shoes worth EUR 1.2 million, but the business does not generate profit. I will say it bluntly: it is not worth producing shoes in Romania. Others do it in China, at much better prices and quality," Vizental said, quoted by Profit.ro.

When it entered the S-Karp shareholding, ROCA relied on the Made in Romania concept, namely quality footwear products at a competitive price, but increasing wages, increasing the price for utilities, lower productivity than in China or in other countries in Asia led to the company’s insolvency, according to the ROCA CEO.

The fund planned to sell the factory to another local shoe producer, Clujana, which is controlled by the local public administration in Cluj county, but the transaction didn’t go through.

The Clujana shoes factory successfully completed insolvency procedures in February this year, after it managed to repay RON 16 million (EUR 3.3 mln) debts to its creditors during the two-year insolvency procedures, according to Mediafax. 

(Photo: Kenishirotie/ Dreamstime)

editor@romania-insider.com

Normal
 

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