Debenhams franchise to exit Romanian market after last two stores ready to close down

The last two Debenhams stores in Romania will soon close down, after their owner, Romanian businessman Octavian Radu decided to withdraw from the fashion retail segment. The two Debenhams stores, in Bucuresti Mall and in Plaza Romania have already started to sell the remainder of their stock at discount prices, while the Bucuresti Mall Debenhams has already closed down one the floors it occupied.

Radu's company used to run the franchises for other fashion brands, such as Mandarina Duck, Kipling, Olsen and Bally, but all the shops under these brands were closed down in recent years. The causes cited are the lower purchasing power and the very competitive fashion brands which entered the Romanian market. Early in 2012, Radu's company Debro Holding was running eight Debenhams stores in Romania and the Republic of Moldova, and was announcing expansion to Hungary. According to previous information, Debro Holding owns the Debenhams franchise rights for 13 countries in Central and Eastern Europe. Radu is the owner of RTC Holding, which also runs the Diverta bookshops. editor@romania-insider.com