KIRKEL (dpa-AFX) - Praktiker AG (PKKRF.PK) said Monday that it is withdrawing from business in Turkey and, in view of the persistently loss-making operations in this country, suspended payments to the local subsidiary.
The company said that Praktiker Yapi Marketleri A. S., operator of a total of nine DIY stores across the country, filed for an application for managed insolvency proceedings - so-called 'insolvency delay proceedings' - with the pertinent Court in Istanbul today.
' we cannot afford a persistent loss-maker like Turkey. We made intensive efforts to sell our Turkish subsidiary but could not reach an agreement that was economically acceptable for us. That is why we now have to take this route to end this loss-making commitment in the interest of securing the continued existence of the Group as a whole,' said Armin Burger CEO of Praktiker AG.
Under the insolvency delay proceedings, the store portfolio is to be divested wholly or in part to a third party according to a restructuring plan presented to the Court, and the inventories are to be sold off. If the Court approves this application, the management of Praktiker's Turkish subsidiary will implement the plan under state supervision.
'In the course of the winding down of business, Praktiker in Turkey will try to find the best possible individual solutions for suppliers and lessors and seek to avoid job losses for the employees wherever possible, or handle them in a socially acceptable way,' the company said.
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