"Pevec" to appoint new management - strategic partner from Germany to arrive

Former President of the Administration and the owner of Croatian market chain "Pevec", Zdravko Pevec, will appoint new management, while he will be leading the Supervisory Board.

People in "Pevec" confirmed that company had agreed the contract with strategic partner from Germany, but they did not want to reveal the name of that company.

"Pevec Group" experiences serious financial problems. Banks have discontinued its further crediting because of the company's inability to settle its regular obligations. "Pevec" registered drop in turnover by 23% in the first half of this year against the same period in 2008.

"Pevec" has recently laid off 500 workers, and Croatian websites claim that the company will be restructured and that both volume of activities and number of workers will be additionally reduced once the auditor enters the company at the initiative of the banks.

During the restructuring process in the company, the Pevecs will not be able to make any decisions concerning the Group's operations.

The media are not explaining how the arrival of the strategic partner from Germany will help the company to overcome the crisis and cut its debt to creditors and suppliers, which now amounts to 260m EUR.

"Pevec" has one megastore with 300 employees in Serbia, in Pančevački Road in Belgrade.