Canceled CBA franchise holder files for liquidation
Retail store operator Palóc Nagykereskedelmi, which announced last week that Hungarian-owned retail chain CBA had canceled its franchise contract for all its 80 stores, reportedly voluntarily filed for bankruptcy at a local court in Balassagyarmat yesterday. Last week the company had said its stores would reopen this week.
The Balassagyarmat courtʼs press secretary József Soós said the company is now under a temporary payment moratorium, and if the court accepts the companyʼs filing, a trustee will be appointed to manage it, Hungarian news agency MTI reported late yesterday. According to Soós, several creditors of the company have also asked for its liquidation.
Last week, CBA charged the franchise partner with failing to fulfill its contractual obligations, and therefore removed it from the franchise network and prohibited it from using marketing elements and logos of CBA. József Czékmán, the managing director of Palóc Nagykereskedelmi, which employs about 1,300 people in Nógrád County, confirmed reports about the closing of stores, adding that after assessment of inventories, all the stores would reopen this week. He added that potential buyers had already expressed interest in the stores, according to MTI.
The company has been loss-making in the last three years and some of its stores have had problems with inventories and supply management in recent weeks, Hungarian news agency MTI reported yesterday.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.