(Greece) – Sklavenitis, a top supermarket chain in Greece, signed a memorandum of understanding this past Wednesday concerning rival supermarket chain, Marinopoulos, which filed for bankruptcy a few months ago. The legal action will allow Marinopoulos to stop the process of completely shutting down their stores and Sklavenitis will take over.
The court will look at the motion on September 21, 2016 and the above actions are pending the court’s approval. Marinopoulos won’t need to shut down their stores and Sklavenitis will be given 100% ownership of the struggling company. It will also enable the chain to acquire a loan of 360 million euros.
Marinopoulos has been struggling for some time. In the past, Slavenitis and Marinopoulos have entered into talks where Sklavenitis would own them. However, these talks fell through. Because Marinopoulos was unable to pay off its debts, the chain filed for bankruptcy.
If the memorandum is approved on September 21, Marinopoulos will have two options as to how they will pay off their debts. Any debts that are over 100,000 euros will be paid back with a 50% reduction, and debts that fall below that amount are to be paid off in full.
Marinopoulos, at one time, was one of the most successful companies in Greece. However, in recent years, it has been hit hard by Greece’s recession. With sales down, the company began to struggle and had a difficult time paying off its debts. After the initial Sklavenitis deal fell through, they attempted to restructure and then ultimately filed for bankruptcy instead. Overall, Greek spending on incidentals such as groceries has declined.
There were fears that the bankruptcy would put a lot of people out of work. If Marinopoulos was forced to close, people would be out of work. Now that Sklavenitis is taking over, they could choose to keep many of the stores open.