The Vitebsk Products retail chain is coming under the management of Vitebskmyasomolprom OJSC

This measure should help the regional trade enterprise to restore the full operation of its stores, settle accounts with suppliers and manufacturers, revive its reputation as a reliable partner, and consequently, make plans for further development. The first assessments of the new management team's performance will be made based on the results of the IV quarter of the current year.

The regional executive committee took a direct part in the fate of the trade enterprise. According to its September decision, the entire state-owned block of shares in the charter capital of the joint-stock company (more than 98%) was transferred free of charge from city to regional ownership. The functions of the owner's supervisory body are now performed by the state association "Vitebsk Concern "Meat and Dairy Products".

Representatives of the state in the management bodies of the OJSC have been appointed: Olga Voronova, Deputy General Director of the concern for economics, and Leonid Dolgorukiy, Head of the Marketing and Sales Department.

On September 30, at an extraordinary meeting of shareholders, a decision was made to transfer the powers of the executive body of the company to OJSC "Vitebskmyasomolprom", which is part of the concern. It will be responsible for the operational management of the retail chain, while "Vitebskiye Produkty" will retain its legal entity status.

– The concern has the financial stability and reputational resources to support such a deeply unprofitable enterprise as "Vitebskiye Produkty" is today, – emphasized Olga Voronova in an exclusive interview with "Vitebskiye Vesti". – Active steps are already being taken to maximally stock the retail outlets with all necessary goods. First of all, this concerns products manufactured by the concern's enterprises, as well as by other producers from the Vitebsk region. In particular, all issues regarding the supply of products from "Vitebskhlebprom", the "Vitba" combine, the Vitebsk liqueur and vodka plant, etc., have been resolved. Products from manufacturers from other regions will also be represented in the chain.

The retail chain was handed over to the concern in a deplorable state, which could not have been

even the most loyal customers. Based on the results of the half-year, the revenue of "Vitebskiye Produkty" fell by more than a third compared to the same period in 2015. The city administration expected the network to enter the second half of the year without losses, but the negative financial result amounted to about 15 billion rubles (before redenomination). The company's debt obligations reached almost 150 billion rubles. The average number of employees decreased by almost 20% during this period.

The concern will have to deal with such problems, while immersing itself in a trading environment uncharacteristic for it against the backdrop of consumption stagnation. According to Olga Voronova, the first steps of the new team in the financial sphere were taken to pay off salary arrears.

– Today we have fully settled with the employees, – stated the state representative. – I want to note that the enterprise's specialists met the arrival of the management company with optimism, with which they associate hopes for the revival of the retail chain. By the way, in the future, with the growth of turnover, we will definitely create additional jobs.

Regarding the improvement of the enterprise's financial well-being, negotiations are currently underway on the possibility of restructuring debt (mainly loans from Belаrusbank, which financed modernization projects), as well as with partners on deferred payment for supplied products.

Sergey Antonov, "Vitebskiye Vesti". Photos from open sources.