Greece’s leading electronic appliances chain Elektroniki Athinon announced last Wednesday that it has filed for bankruptcy following a court decision.
The chain’s remaining 45 outlets officially closed on Thursday, leaving 450 employees jobless.
According to Elektroniki, they not owed unpaid wages and are set to receive full compensation in 8 months.
However, a reconciliation meeting between employer and employees at the request of the Federation of Greek Private Sector Employees that was scheduled for Thursday at the Ministry of Labor, has been cancelled.
In an official statement, the Electroniki Athinon’s management said:
“Despite the company’s continuous efforts, the state of the economy, further weakening of the purchasing power of consumers, capital controls, among other things, made foreign suppliers suspicious of Greek companies, and in conjunction with banks refusing to give loans, it was impossible to continue the operation of the company. The business plan, which was co-decided by the banks, suppliers and shareholders in April 2015, had created reasonable prospects for the recovery of the company. The events, from June 2015 onwards, undermined and then canceled practically any plan. The result was a tight liquidity problem, lost market share and increase of losses. Therefore, Electroniki, having exhausted all possible options, was led to today’s painful decision.”
Electroniki Athinon was originally founded in 1950 and during its 66 years of operation, offered employment to thousands of Greeks. In 1989, it was acquired by current owner Yannis Stroutsis and was listed on the Athens Stock Exchange in 1999. As of 1 October 2012 it had suspended share trading due to outstanding debts to banks, suppliers, and the landlords of the stores. Once an insolvency administrator is appointed by the court, the liquidation of company assets will commence; estimated to last about eight years.