OP Prostejov fights to maintain profitability
2010-01-19
The
Czech clothing producer and retailer OP Prostejov plans to close one-third of its 100 stores in order to maintain the profitability of the business. According to
Hospodarske Noviny, the company conducted an audit of its network, which revealed that only 30 of its stores are currently profitable. By the end of 2010 OP Prostejov wants to operate 65-75 stores.
Moreover, the company agreed with employees on the temporary reduction of working hours. Company introduced a four-day work week until the end of February. It will be the way to avoid the work force reduction.
According to preliminary estimates, the company generated revenues of CZK 1.3bn (€50.2m) in 2009 while losses for the same period amounted to CZK 400m (€15.3m). The company currently has outstanding debts of CZK 1.2bn (€46.3m).
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