As part of the stabilization process of Konzum in BIH announcement of the termination of company Velpro d.o.o. Sarajevo
Jul 27, 2017
Top level BiH officials, representatives of Agrokor and Agrokor companies in BIH, as well as the representatives of employers and suppliers all participated in the today's meeting that was held in the Council of Ministers of BiH. Meeting agenda was the update on the company restructuring process, as well as the separation of Konzum and Mercator and the return of Mercator in BIH. On this occasion, further progress of the separation of Konzum and Mercator was presented in order to form two stable, sustainable companies and ensure the future of employees and suppliers, which will also result in an overall positive influence on the entire BIH economy.
Agrokor confirmed today that the previously announced transformation and stabilization process of Konzum BIH business activities through the re-introduction of Mercator brand to the market of Bosnia and Herzegovina and the separation of Konzum and Mercator stores continues according to plan. With the goal of reaching agreements that are acceptable to both sides, talks with the suppliers are ongoing. A large number of suppliers expressed their support to the business transformation process. It was also announced today as part of the business reconstruction process of Agrokor d.d. in Bosnia and Herzegovina that the termination process of Velpro d.o.o. Sarajevo company was initiated.
The remaining debt that Velpro d.o.o. Sarajevo has towards its suppliers will be taken over by Konzum BIH before the termination process is completed and it will be paid in full. Velpro center's retail locations are rented and at the moment there are ongoing negotiations and talks with the owners referring to Velpro’s exit from these locations, so that these locations can be put to some other commercial use as soon as possible.
Out of the total of 163 employees, an alternative employment solution will be sought for as many Velpro employees as possible through placement in available jobs in other Agrokor companies in BIH. The rest of the Velpro employees will receive the appropriate severance pay and the maximum level of protection according to the applicable laws. This process will be conducted in consultation with the Commerce Trade and Services Trade Union of BiH (STBIH) and employees will be taken care of in the best possible manner.