Estonia, Foodstuff, Legislation, Markets and Companies

The barrister Maire Arm, trustee in bankruptcy of Tere's parent company Elveda, recalled members of the supervisory board of Tere and appointed a new supervisory body consisting of CEO of Pharma Holding Katre Kovask, board member of Kamakamaka OU Erik Haavamae and partner at the Ellex Raidla law firm Sven Papp. The supervisory board elected Margit Talts who has long experience of retail trade and food industry as the new CEO, Tere announced on Thursday.

"Margit Talts has long experience of food industry management and will bring competence as well as freshness into running Tere," said Kovask, the newly-elected supervisory board chairperson. "From the viewpoint of both employees and cooperation partners, Tere's economic activity has been shaky for quite some time, but I believe Margit will be able to motivate the team and guide Tere into stable development."

Implementation of Tere's rehabilitation plan will continue, Kovask added.

"Tere has been doing business on the Estonian market for a long time. The company holds a considerable market share and its diverse product assortment enjoys a good reputation among consumers," the new CEO noted. "There are many problems that have to be resolved, but we're certain to succeed with a joint effort."

Talts led the growth and development of Saastumarket discount stores in Estonia as director of Kesko Food's Saastumarket chain in 2002-2005. She was head of Maag Grupp in 2005-2016.

Maag Grupp announced on Thursday it had acquired from Nordea and DNB Bank the claims against Tere and its affiliates, thereby becoming the largest creditor of Tere. The group did not obtain control over Tere as a result of the transaction but plans to hold negotiations over acquiring the company and file a notice of consolidation to get permission for merger, it said.