Former owner wants to buy back the Romanian electronics retailer Domo

2010-07-01

Lorand Szarvadi, the general director and founder of the Romanian white and brown goods retailer Domo, wants to buy the company back from the investment fund Trans Balkan Investment, formerly Equest Investment Balkans. The fund purchased 75% of Domo back in 2007 for some €75m.
It is believed that the value of such a potential transaction would be far less than the purchase price three years ago. Last year the brown and white goods retail market in Romania contracted by 42%, to some €850-900m. What is more, in Q1 2010 this market continued to shrink. In 2009, Domo registered a relatively low decline in sales revenues compared to the largest players in this sector, Altex, which saw its sales revenues halved to €180m, and Flanco, which entered insolvency.