As reported by Radio Eska, the Polish drugstore chain Kontigo has been closing unprofitable stores for some time. Now the decision has been made to liquidate all 15 stores located in Polish shopping malls. It is not known yet when this will happen, but this process is to be continued from the second quarter of 2024.
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Eurocash cuts employment, closes wholesalers and stores
Kontigo will only develop in the e-commerce channel
Eurocash Group confirms that ultimately Kontigo will develop only in the e-commerce channel. This is a step by the Group towards increasing efficiency and a decision that is consistent with the goal of reaching the break-even point in the Projects segment in 2025.
Almost PLN 35 million loss for Kontigo
Currently, the chain's website contains information about 9 operating stores.
The shareholders of Kontigo Sp. z o. o. are:
– Eurocash Franczyza Sp. z o. o., owning 99.99% of the shares,
– Eurocash Trade 1 Sp. z o. o., holding 0.01% of shares.
The company's net loss for 2022 is PLN 34,960,626.
Let us remind you that in 2023 we wrote that Kontigo – a chain of cosmetic stores belonging to the Eurocash group – is shrinking more and more. The company stated on its website that it operated 19 locations. At the end of 2019, there were 32 stores, and a doubling of the number of stores was announced.
The company's financial statements for 2022 read: "As of December 31, 2022, the company's equity is negative and amounts to – PLN 185 million, the surplus of short-term liabilities over current assets is PLN 178.6 million. The company uses group sources of financing – cash pooling in the amount of PLN 175 million. Due to the losses exceeding the level of supplementary and reserve capital and half of the share capital, in accordance with Article 233 of the Commercial Companies Code, it is necessary to adopt a resolution on the continuation of the company's operations.
