(Greece) – Greece’s largest supermarket chain, Marinopoulos, is experiencing challenges concerning their restructuring efforts. The chain had been struggling financially for a variety of reasons, despite the fact that it is a well respected chain. Their efforts to restructure have been under threat since a disagreement between the chain and its creditors has surfaced. Meanwhile, the suppliers whom they owe are starting to put pressure on the chain to settle its debts and for repayments to start back up again.
However, the Marinopoulos group maintains that the company is getting back on track and that it owes no money to their current employees. Currently, the chain is deciding whether or not to file for protection from its creditors and they will make the decision over the next few weeks. They are expected to issue a statement soon indicated that the company is on track to experience future growth.
One of the goals for the company is to figure out a way that they can become self-sustaining at a time when supermarket spending has dropped. The figures released for January – April of this year indicate that spending has slipped 5.7% from the same time period last year. Greek consumer spending in general has been on the decline since the country entered a recession since before the first bailout in 2010.
Back in February of 2016, Marinopoulos and Sklavenitis, two competing chains, announced that they were entering into a deal to form a joint company. That deal, however, has been shelved and given that supermarket spending is down, it is unclear whether or not the deal will ever be completed. The two companies were supposed to have merged and then formed a new parent company to operate both chains. At the time, the deal was seen as a way to offer both companies a vital lifeline.