The Respublika bookstore chain plans to file for bankruptcy. This is stated in the message of the press service, Interfax reports on Wednesday, October 28.
It is explained that Respublika LLC was unable to pay off the debt to creditors and compensate for the losses that arose due to the coronavirus pandemic.
“The company’s cash flow in the context of a pandemic will no longer allow it to fulfill its obligations and pay off debts to creditors. We see no other way out of this situation and intend to file a bankruptcy petition for LLC Respublika. The corresponding message will appear on the Fedresurs website in the near future, “the press service of the Republic’s press service at the agency quoted.
The company said that already in March 2020, a strong decline in traffic began in stores, especially those located in shopping centers, and online sales could not cover the losses.
“The online channel could not compensate for the losses, because, for obvious reasons, amid the crisis and uncertainty for the Russian buyer, paper books, which under normal conditions are not essential goods, gave way to other consumer goods,” the agency quoted the company as saying.
From June 1, 2020, Moscow bookstores began to resume activity after the outbreak of the coronavirus pandemic.
However, in July 2020, about 40% of Russian bookstores remained closed. As reported in the Russian Book Union, the stores that were located in the shopping malls were mostly unable to recover.