Latvia, Markets and Companies, Retail

As Nozare.lv was told by Dace Zundure, operational director of the supermarket chain "Iki", instead of adopting an "ostrich policy", the company has decided to be proactive and is trying to solve the problems which have arisen.

The fact that the company has asked for legal protection does not automatically mean that outlets will be closed or taken over. "Of course it is a signal that the company's activities have become complicated, and there is a risk that this could be followed by changes. However, it should be borne in mind that it is also possible that all problems can be resolved 100 percent. At present, the most important thing is that there are now clearly defined rules of the game for all businesses connected to Elvi, who now all have a legal cover" indicated Zundure.

Thanks to the fact that Elvi is a franchise business, the way out for its owners and shareholders could turn out to be less difficult than if it were a monolithic retail company with its own grocery stores, workers and so on, explained the press secretary for Maxima Latvija, Ivars Andins.

"The situation at Elvi is obviously difficult; however, most likely it is not yet hopeless" commented Andins, reminding that already in the second half of October last year it was predicted that an unusually complicated January and February for retailers could also turn out to be fatal for some.

Chairman of Rimi Latvia Valdis Turlais admits that it is difficult to comment on the detailed financial condition of a market competitor, noting "at present, when unusually strong competition exists among small retailers, all chains have to seek opportunities how to survive in such complicated economic conditions, while at the same time preserving quality levels."

He stressed that Rima Latvia has no financial problems – all invoices with suppliers and other creditors are fulfilled on time and in the full amount. He added that the type of legal protection provided to the "Iki" and "Cento" shopping chains, both of which belong to Palink, was neither necessary for Rimi Latvia nor under any consideration.