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Varteks introduces Integral Business & Financial Restructuring plan
20
Jan '10
Zoran Košcec
Zoran Košcec
The Integral Business and Financial Restructuring Plan is primarily Varteks's response to the crisis, but despite this it also contains development projects, all with the aim for Varteks to survive and develop in the future.

The company is currently in the process of presenting the plan to business banks, but also other interest groups (workers' councils, ministries). Today's presentation to the media was organized in accordance with the presentation plan. Considering that the plan relies on the company's own resources, part of it includes the sale of real estate assets with the basic goal to lower credit exposure towards banks. With this aim and in accordance with the defined dynamic, two projects, i.e. City Center Rijeka and Quatris, are in the process of being sold.

Along with the sale of real estate assets, the plan also includes the shut-down of unprofitable parts of the company, and parallel with this, the further strengthening and development of profitable parts of the system. The implementation of the 4th crisis measures level, which includes additional cuts in operating costs and primarily cuts in the administrative number of employees, is planned as well.

What will happen to employment in the textile industry, but also at Varteks, in the future largely depends on the further development of market circumstances, but also on the implementation of anti-recession measures, as well as measures to preserve employment and to support the struggling real sector that are being announced but have not yet taken hold in practice. When it comes to the textile industry, the approach in the further implementation of the already accepted and adopted textile and garment industry strategy is important as well.

“Varteks directs all of its efforts towards the sustainability of the vertically organized system, but without the implementation of concrete measures on the part of the state this won't be possible any longer. When it comes to the company's market orientation, the brands strategy will have its base in the development and strengthening of our own brands, but also in the selection and standardization of trade brands in the sales portfolio. In addition to this, our aim is to additionally strengthen our position in the business clothing segment by changing the sales unit concept, but also through the streetwear sales program of Levi's not only in Croatia, but also by continuing to strengthen our position in the region. Apart from above-mentioned programs, Varteks's development projects also include the strengthening of the B2B program aimed towards corporate agreements, but also the development of the assortment specialized for public procurement needs, as well as export projects”, said Zoran Košcec, Chairman of the Board of Varteks d.d.

Additional possibilities were developed in the plan through the relocation of the company to a new location, which would create pre-conditions to increase the efficiency of current activities, but also the development of new ones. Thus we will create the pre-condition not only for the stabilization of business, but also for the company's future sustainable development. The plan also elaborates on a worker shareholding project, which should be implemented in the second quarter of 2010.


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