Mosmart registers new company to restructure debts

Russia-based Mosmart Group has registered a new company called Investments and Resources which will help Mosmart to restructure debts against suppliers and contractors, the CEO Vitaly Podolsky said. Investment and Resources is owned by Bcaralla Holding which belongs to Evgeniy Novitsky. Mosmart, with debts of RUB9.6 billion (USD308 million), is in the midst of bankruptcy proceedings. Mosmart closed or sold almost 75% of its store network since November 2008 and lost all its suppliers. However, under its recovery programme, the retailer has already managed to renew delivery contracts to 60% of assortment. Currently, it operates 23 stores and does not plan any new store openings. According to Vitaly Podolsky, the retailer could generate a profit in the second quarter 2010 .

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