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Bicycle Manufacturer Rog Kolesa to Reorganise

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LJUBLJANA, Slovenia (Aug 23) – Rog Kolesa, bicycle producing company controlled by the Elan group, filed for bankruptcy protection for the third time on 2 August due to bad liquidity and debts. The management is to prepare a plan of financial reorganisation in 90 days, bankruptcy manager Melita Burja said on Monday, 15 August. “We […]

LJUBLJANA, Slovenia (Aug 23) – Rog Kolesa, bicycle producing company controlled by the Elan group, filed for bankruptcy protection for the third time on 2 August due to bad liquidity and debts. The management is to prepare a plan of financial reorganisation in 90 days, bankruptcy manager Melita Burja said on Monday, 15 August.
“We will reorganise production and other processes and find optimal personnel solutions to preserve employment, bike production and most business relations with buyers and contractors,” head of Rog’s management Laura Ceglar said.
Some production programmes are to be reduced, so the company will import certain bike parts. Although it is certain some workers will be made redundant, Tevz Tavcar of the Elan group denied allegations to 30 to 80 lay-offs. He also said the company is not going bankrupt.
Ceglar said the bad financial situation is among other things a consequence of the wrong marketing strategy that brought to insufficient and structurally inadequate bicycle sales, insufficient costs control and worsening personnel structure.
Last year’s business was bad, according to the current management, due to former management’s work under Tomi Sefman. The results showed SIT 850m (EUR 3.55m) losses, which the company managed to cover at the expense of excess revenues, concluding the year with EUR 358,962 worth of profit.
According to Burja, current business is more satisfying. The company is entering new markets in Western Europe. However, the management critics say that changing the name from Elan Bikes to Rog Kolesa will have a bad impact on the company’s competitiveness.
The company is to hold a shareholders’ meeting on 31 August to decide on the discharges to the former management and supervisory board
(Source: Slovenia Business News)

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