The Novosibirsk-based OR Group (former Obuv Rossii Group of Companies) is restructuring its business, as part of which it closes part of unprofitable stores. To optimize operating costs, it is also planned to suspend the activities of the S-TEP shoe factory owned by the group in the city of Berdsk near Novosibirsk, TASS reports.
The factory will suspend activities from August 1, the timing of the resumption of the production enterprise will depend on negotiations on restructuring with the main creditor banks, the company noted. It is also reported that the factory has already fulfilled all production plans for the current year. The number of employees of the S-TEP factory is more than 100 people.
OR Group is currently in the process of restructuring its debt portfolio and negotiating with banks to extend credit lines. The company explained that since the OR Group was "delayed in paying the body of the debt, creditor banks go to court and have the opportunity to carry out direct debiting of funds from the company's accounts, which puts pressure on operating activities."
In January 2022, OR Group defaulted for the first time on the non-marketable bond issue BO-07. Its main holder is Promsvyazbank. Until the end of March, the company fulfilled its obligations to pay coupon income, but in April it made a series of defaults on all traded bond issues. At the end of April, the group announced the preparation of a comprehensive restructuring program, the main parameters of which relate to credit lines and bond issues.
The S-TEP factory in Berdsk was founded in 2000 by entrepreneur Ilya Teper. In 2015, the business was sold to Obuv Rossii Group of Companies. At that time, the factory's capacity was 500 thousand pairs of shoes per year. In 2016, a line worth 100 million rubles for the production of specialized footwear for the military, police and the Ministry of Emergency Situations was launched at the plant. It was assumed that with the launch of new production, the factory would be focused on government purchases.
OR Group (formerly Obuv Rossii Group of Companies) is developing the Westfalika chain of stores, which presents a wide range of goods from different manufacturers and the online marketplace westfalika.ru. The network of sales and service points under the Westfalika brand includes more than 700 objects in more than 295 cities of Russia. The company is included in the list of backbone enterprises in the field of light industry. In 2020, the group's revenue amounted to 10,8 billion rubles, net profit - 0,6 billion rubles, EBITDA - 2,3 billion rubles.