What about the future of Pepco? The head of the board of directors explains whether the network is at risk of bankruptcy

What about the future of Pepco?  The head of the board of directors explains whether the network is at risk of bankruptcy

Due to the problems of Steinhoff International, the majority owner of Pepco, is there a risk that popular stores will begin to disappear? The head of the board of directors of Pepco Group assures that there is no such danger.

Poles really liked shopping at Pepco – and it was mutual, because nowhere else in Europe has the chain opened so many stores. Currently, there are 1,223 of them operating in our country, and in Spain, which is comparable in terms of population, 180. Other brands similar to Pepco have been successfully operating in Germany for a long time, so the chain does not have big ambitions in this market. There are only 17 branches in Germany. Pepco is doing well in Hungary and Romania, where it has 238 and 428 stores, respectively. Taking into account the number of inhabitants, the “density” is higher than in our country.

The owner of Pepco is in serious trouble

At the end of July, the news broke that the shareholders of Steinhoff International, which holds a majority stake (72%) in the chain, had voted on a resolution to dissolve the company. “The owner of Pepco is going bankrupt,” the media reported, and although the store itself commented that nothing threatened its future, doubts were sown.

In an interview with “Rzeczpospolita”, Andy Bond, head of the board of directors of Pepco Group, assured that Steinhoff International’s problems do not affect the functioning of stores.

As proof that Pepco is doing well, he recalled that the group recently carried out a bond issue, “on the occasion of which three of the world’s largest rating agencies performed a thorough due diligence of our business and assigned us a credit risk rating that is completely consistent with other companies our size and confirms that there is no risk resulting from the relationship with the holding company,” he said.

Pepco wants to enter Bosnia and Herzegovina

– We are developing in Poland, primarily due to the increasing number of stores (…) As you can probably see, we are also rebuilding all our older stores in Poland to make them look more modern. This also applies to branches outside Poland, we are developing very well and according to plan. This year we will open more stores than ever before and I think there are particularly large opportunities ahead of us to exploit both in Western Europe and Eastern Europe. We plan to enter another market soon, Bosnia and Herzegovina. So we are a very expansion-oriented company. And we will continue to grow very rapidly over the next few years. I’m sure of it, he said.

Andy Bond admitted that the chain is experimenting with new product categories and brands. He mentioned the introduction of new brands of denim products to the clothing offer and the introduction of small household appliances. – However, although we may introduce new categories and brands, the character of our stores will not change fundamentally. We will always be primarily stores selling clothing and everyday products, he assured.

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