Brothers Ilie and Cornel Penescu have closed the sugar andvegetable oil plants they hold in Arges county a few months afterPic company's insolvency forced them to exit the food retailmarket.
Food production, especially sugar production is among the firstbusinesses put together by the Penescu brothers. This allowed themto tap into the hypermarket segment in 2004, a market dominated byforeign retailers, in which they invested several millioneuros.
"The company's production facilities are no longer operatingeither, but we are still packaging sugar for the Carrefour and Realchains," said Ilie Penescu. He added that the closure of thechain's five hypermarkets after the company became insolvent had amajor contribution to the exit from the manufacturing businessbecause the group's plants lost their biggest market.
Pic was the fourth largest sugar producer on the Romanian marketin 2008, and the company's hypermarket chain was the biggestRomanian food retailer, with the group having 3,000 employees inall.
The company filed for insolvency at the request of shareholdersin November last year, which froze debt to banks and to suppliersput by Penescu at 60 million euros.
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