EMCC European Monitoring Centre on Change

Supermarket Larisa

Company/Organisation:
Supermarket Larisa

Geographic Location

Country: Greece
Region: Larisa; Thessalia; Voreia Ellada

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.1 - Retail sale in non-specialised stores
Number Employed: 577

Employment Effects

Announcement Date: 22-04-2015
Planned Job Reductions min: 577
Planned Job Reductions max: 577
Type of Restructuring: Bankruptcy/Closure
Direct Dismissals: 577

Additional Information

According to local newspaper "Eleftheria",  Supermarket Larisa, the largest supermarket chain operating in the region of Larisa went bankrupt on April 22, 2015 after 28 years of operation. According to  the reasoning of the court's ruling, "the company began to face financial problems from 2011, which were gradually rising and in the autumn of 2013 came to a general and permanent inability to meet its' overdue liabilities. Since then, it has ceased to pay employees' wages, tax liabilities, service debts to suppliers, and has not paid VAT taxes received from its customers. Additionally, from September 2013 onwards the company owes earned incomes to the employees as they were not paid in a timely fashion  and were also obliged to take part of their salary in kind.  In mid-June 2014 all 42 supermarkets were shut down. After the bankruptcy of the cooperative, 422 workers and 135 workers & co-owners lost their jobs. 

The closure of Supermarket Larisa has subsequently been the subject of a European Globalisation Fund application in 2015.

European Globalisation Fund: 2015 / 11