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Historically important company Fokas collapses

09 January 2014 / 15:01:47  GRReporter
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The historically important company for clothing and shoe production, Fokas, is on the verge of bankruptcy. In a statement sent to the first instance court in Thessaloniki, a lender to whom the company owes 40,400 euro has requested that it be declared bankrupt.

Fokas’ lender states in the request that the company is unable to settle its obligations and should therefore go bankrupt in order for the tenders for the sale of its assets to be launched.

"The fact that Fokas shops are closed down makes it quite clear that the company is no longer operating," reads the request for declaring the bankruptcy of Fokas.

Fokas’ debts

As indicated, as of 1 August 2012, the amount of Fokas’ liabilities to banks was 32.8 million euro, to suppliers 15 million euro, to the state 4.8 million euro and to its staff 1.2 million euro. Fokas has suspended all payments since August 2012 and its liabilities already total 66.2 million euro (including the amount of the aforementioned debts). However, their amount today is much higher because the company has not paid its employees for many months.

Fokas’ assets

The lender who insists on declaring the bankruptcy of Fokas states that the assets available to the company can cover a large portion of its liabilities, if sold.

In particular, Fokas has the following assets:

- A logistics centre with a total area of 12,600 square metres near Oreokastro, Thessaloniki, which houses the company headquarters and its support functions.

- A warehouse with a total area of 2,316 square metres, east of Thessaloniki.

- Stocks of goods (clothes, shoes, etc.).

The reason for the stalemate

The problems of Fokas began in 2010 when the company reported, for the first time, losses of 7.6 million euro compared with its profit of over 210,000 euro in 2009.

These losses combined with the high production and administrative costs and with the gradual decline in sales from 2010 onwards posed a lot of problems to the company.

So, all commercial sites the company had in 2008, including eight retail shops across the country and one shop selling goods at reduced prices in Athens, are closed today.

After 1936

Fokas is the successor to Vergopoulos, a company producing clothes and it was founded in 1936 by brothers Apostolis, Leandros and Odysseas Fokas. In 1958 the company was renamed Fokas, and in 1978 it opened the first shopping centre with a total area of ​​7,500 square metres on the shopping street "Tsimiski" in Thessaloniki.

In 1990, Fokas continued to grow and, in the middle of the decade, signed an agreement with Esprit; in late 1990 and early 2000, the group planned its listing on the stock exchange.

Vassiliki Foka and her sisters Maria and Polly and her brother Anestis played a significant role in the second generation of the company's management.

Vassiliki Foka is ex-wife of Asterios Economides, head of Archon Constructions, who is currently on trial and in Korydallos prison as it seems that he is involved in the scandal with the submarines.

Tags: FokasBankruptcyLenderLiabilitiesAssets
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