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Orphanides rescue bid

29 December 2012

In a bid to save the Orphanides supermarket chain, the Cyprus Commerce and Industrial Chamber held a meeting yesterday.

Although there is no agreement yet, there is a plan for suppliers to take over the company and continue trading but with a reduction of the number of outlets to about ten stores.

Last week the chain announced it was going into administration. The company owes banks between €140m and €150m, €85m of which is owed to suppliers and €10m to other creditors.

Negotiations between Orphanides and suppliers continue. Currently, ten shops in the chain are closed following the suppliers refusal to extend further credit.

As doubt lingers over the company’s future, employees of the debt-ridden company demonstrated in the streets last week, asking for their jobs to be saved.

If the rescue bid fails, around 1200 staff and 2000 other persons linked to the supply chain would be affected.

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