The shareholders of Braiconf, the country’s biggest shirt producer located in the eastern city of Romania, Braila, are summoned on April 12 to decide on selling the factory’s main premises to German retailer Kaufland.

Braiconf has reached a deal to sell the premises for EUR 7 mln and plans to invest EUR 9 mln in new premises and modern equipment, News.ro reported.

The move is part of a long-term plan drafted by the company’s management, in an attempt to restore the company’s market position after the adverse market conditions in 2020.

The land subject to the planned sale to Kaufland has 10,000 sqm. Braiconf's management currently evaluates two alternative locations for the new premises preferably a historic building in the center of the city.

"We would very much like to succeed in renovating one of these historic buildings, to transform it into the new Braiconf headquarters and thus to give Braiconf a sense of tradition, history, but also adaptation to the present," said Braiconf CEO Silviu Dumitrache.

In 2020, Braiconf recorded losses of RON 4.5 mln (EUR 0.92 mln), similar to the 2019 result, while its operating revenues declined by 14%, to RON 36.2 mln (EUR 7.43 mln), according to the preliminary results.

The company's shares are listed on Bucharest Stock Exchange's AeRO market, where they recorded an 18% leap on Friday. The market capitalization thus reached RON 26.4 mln (EUR 5.4 mln).

(Photo: Braiconf Facebook Page)

andrei@romania-insider.com