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Second meeting of Konzum BIH suppliers and Agrokor Extraordinary Trustee

Agrokor's Extraordinary trustee Ante Ramljak, Vice President of Mercator Group Igor Maroša and CEO of Konzum BIH Tomislav Bagić held another meeting today with the representatives of more than hundred suppliers of Konzum BIH. The subject of the meeting was continuation of cooperation between Konzum and the suppliers based on mutual and sustainable long-term partnerships.

Ante Ramljak informed Konzum suppliers in BIH of the developments in the process of finding the best possible solution for a new concept of Agrokor's retail business in Bosnia and Herzegovina. “The process of working on the transformation of Agrokor’s retail in Bosnia and Herzegovina, detailed analysis and market research were conducted. Based on this information we have prepared various business scenarios that showed us that the optimal path of Mercator’s return to BIH is for it to take over outlets that are owned by Mercator and rented or sub-rented to Konzum BIH, while maintaining business operations using both brands. Today we have presented in detail to the suppliers the financial indicators that stand behind this decision, as well as a plan to resolve all mutual relationships in the following several months through the payment of due claims in the amount of € 40 million, out of which € 33.5 million will be directed towards suppliers in BIH. Through the continuation of this cooperation we will ensure long-term sustainability of this new business model for our suppliers and ourselves. Agrokor will provide capital injections to Konzum BIH in receivables and money and I expect that this process will result in an overall  positive contribution to the economy of BIH. Of course, all our plans need to be confirmed by the Temporary Creditors' Council. Strong Mercator brand will return to this market already in September. This will bring benefits to suppliers, consumers and employees, and Konzum BIH will undergo a process of restructuring after which it will continue its business operations as a reliable partner to all of its stakeholders.”, said Ante Ramljak.

Igor Maroša said the following in regards to the activities of the return of Mercator to the BIH market: “We are focused on the Mercator development and our goal is to take full advantage of the strong brand in a way that will enable us to realize the return of Mercator to the BIH market as quickly as possible. Our plan is that 83 outlets that were rented and rebranded by Konzum in 2014, become again  the Mercator brand. The separation process will take place during August after which Mercator will continue the management of these stores in BIH market. Our analysis shows that in this way we will achieve the maximum possible value for Mercator and our partners and the long-term benefit for our employees, creditors and shareholders.”

Tomislav Bagić thanked the suppliers for their support and cooperation with Konzum BIH. “A decision had been reached that 176 stores will continue their business operations as Konzum in BIH. We will undergo the restructuring and optimization process of our sales network, that will be realized in a manner that is highly socially sensitive. I expect the separation of the businesses to be done at the beginning of September and it is our goal to grow with our business partners and have successful cooperation with them. I would also like to thank our customers for their trust. I am especially pleased that we have found a way for the Konzum BiH to continue providing our customers with the high quality products and services at affordable prices, using the best retail practices.”, said Tomislav Bagić.

„We are happy with today's meeting because we received concrete information and perspective as well as the course of action in a given time frame. We hope that all of this will be implemented perhaps even sooner than it is planned, so from this perspective as one of the largest suppliers and a local company, we welcome this opportunity that enabled the suppliers from BIH to receive accurate information that will lead to the stability of business and the restoration of trust.”, said Adin Fakić, CEO of Milkos dairy from Sarajevo.