EMCC European Monitoring Centre on Change

Agrokor (headquarter)

Company/Organisation:
Agrokor (headquarter)

Geographic Location

Country: Croatia
Region: Grad Zagreb; Kontinentalna Hrvatska; Hrvatska
Location of affected unit(s): Zagreb

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47 - Retail trade, except of motor vehicles and motorcycles
Number Employed: 190
Group: Agrokor

Employment Effects

Announcement Date: 08-05-2017
Planned Job Reductions min: 100
Planned Job Reductions max: 100
Type of Restructuring: Bankruptcy
Employment Effect Start: 02-05-2017
Foreseen End Date: 30-06-2017
Direct Dismissals: 100

Additional Information

The private firm Agrokor is the biggest food producer and retailer in the Balkans with some 60,000 employees. It expanded rapidly, notably in Croatia, Serbia, Slovenia and Bosnia, but mostly buying the other forms using bank loans. Agrokor piled up debts, leaving it struggling to pay creditors and suppliers. The banks are not willing to allow new loans and Agrokor is on the brink of the bankruptcy. It accumulated debts of about HRK 45 billion (€6.07 billion), or six times its equity. The Government appointed the restructuring officer to the struggling company at the request of a creditor. He started to fire employees from the Agrokor headquarter so from 190 of them there will be around 90.