Orlen announced the liquidation of the Ruch kiosk network, due to the continued negative financial performance of this part of the business. Currently, aides are receiving contract terminations, although some of them are opting to buy back the kiosks and run them themselves. Orlen reported that Ruch’s debt at the end of 2023 amounted to more than PLN 160 million.
This is the end of Ruch, profitability not restored
– Orlen’s previous management, when acquiring Ruch, presented a restructuring plan to restore the company’s profitability and financial stability by 2021. Unfortunately, the stated goals have not been achieved,” the owner of Ruch noted.
According to Orlen’s press release, 40 aides have decided to buy back the kiosks. After the new year, they will run these outlets on their own, without the franchisor’s support.
Crisis and eventual collapse
It is worth recalling that already at the end of May this year, Ruch abandoned press distribution after more than 100 years in the business. Press distribution is now handled by other distributors, such as Kolporter, so newspapers and magazines still reach outlets.
End of a long history
RUCH S.A. has a history of more than 100 years in the Polish market. The company was founded in 1919 and from the beginning was engaged in press distribution, becoming one of the largest distributors in Poland. In its glory years, it had a network of more than 30,000 kiosks, offering some 3,750 newspaper titles. By comparison, the Żabka chain currently has about 11,000 outlets.
The first Ruch kiosk was established in early 1919 at the Vienna Railway Station in Warsaw, and after just six months more than 60 kiosks and bookstores were in operation.
RUCH made its debut on the Warsaw Stock Exchange on December 22, 2006. Following its success on the stock market, the company raised funds to modernize and expand its network. However, in 2011, it was delisted from the stock market and went under private management, sparking one of the largest restructurings in the history of Polish business.
– Currently, RUCH S.A. operates mainly in a small point-of-sale format, offering newspapers, cigarettes, public transportation tickets and impulse products. Ruch kiosks also offer services such as bill payment, SIM card registration and cashback, which is how the chain describes itself on its website.
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