Romanian bookshop chain Librăriile Alexandria becomes insolvent with EUR 4.9 million debt

The bookshop chain Librăriile Alexandria, with stores in Suceava and nine other counties across Romania, has filed for insolvency, and after court approval, the insolvency specialist Casa de Insolvență Transilvania was named judiciary administrator. The bookshops chain, run by the firm Sedcomlibris and owned by Romanian businessman Dan Alexandrescu, has as main creditors the lenders Banca Transilvania and Banca Comercială Română, as well as the owners of the retail spaces where the bookshop runs its units. End 2012, the company had a debt of EUR 4.9 million, according to Finance Ministry data. The company's turnover in 2012 was of EUR 3.7 million, while its profit was of only EUR 31,000. The retailer employs 150 people, according to data from the Finance Ministry, but the activity will not be affected by the insolvency situation, according to the judiciary administrator. In 2011, its turnover was of EUR 3 million, and its profit, of some EUR 40,000, while the debt was the same as at end 2012. The company, which is the successor of the Centrul de librării bookshop chain created 60 years ago, currently runs 30 stores, with a retail area of over 11,000 sqm. According to Casa de Insolvență Transilvania, the lack of cash and high rents led to economic difficulties for the bookstore chain, which however stands high chances of recovery. editor@romania-insider.com