The importer and distributor of design interiors, Proges, was declared insolvent this month as the Oradea Court named Transylvania Insolvency House (CITR) as the company’s receiver.
The main reasons for insolvency are reducing or canceling credit limits provided by insurance companies, delays in recovering receivables, a reduction of sales during the economic crisis, and the increasing insolvencies among construction companies.
The company will attempt to expand on the market, however with reduced operational costs while increasing sales.
Proges has a network of 25 stores and logistics centers and in 2010 produced turnover of RON 174m and a loss of RON 1.3m.
Total debts of the company were over RON 139m, according to the company’s financial report from 2010. Its business declined in 2010 from more than RON 220m in 2009, when the company actually turned a profit.
