Electronics retailer Electro World has applied for bankruptcy protection with the Budapest Court of Appeals, group chief Károly András Nagy said on Thursday. Electro World filed a claim for bankruptcy protection in February, but the Budapest Municipal Court rejected it, claiming it had no jurisdiction.
Electro World is consolidating with the aim of becoming profitable again, Nagy said. A little more than half of Electro World's creditors seem willing to accept an agreement, he added.
Nagy blamed Electro World's troubles on losses of its former owner, the UK's Dixon group, which ran big, underused stores with high rents and too many staff.
Electro World wants to cut monthly costs from HUF 300 million to just HUF 60 million in one or two months, while generating turnover of HUF 400-500 million, he said. It plans to cut staff from 220-240 to 180, he added.
The company is in talks with foreign investors, Nagy said.
Electro World operates eight stores now, down from 13 earlier. Revenue from the business year ending March 31 is expected to reach HUF 5.5 billion with losses of HUF 1 billion.