Altex to set up own consumer loans company

Altex, a home appliances and electronics retailer, plans to launch its own consumer loans company this spring to provide lending activities at Altex and Media Galaxy stores. Last year, more than 70% of sales were made through lending.

“A consumer loans company is the natural outcome of the need to split up company activities,” said Dan Ostahie, Altex chairman.

In the first year of activity, the new company will focus on Altex and Media Galaxy networks. In practice, some Altex employees, who are specialised in lending activities, could be taken over by the new company.

“This is the right time for us to launch our own consumer loans company,” said Dan Craciun, a consumer finance manager with Altex.

Consumer loans companies have recently attracted attention from investment funds and strategic investors, particularly after the boom in consumer loans seen in 2003, which generated an explosion of growth in the electronics and home appliances segment.

Credisson, the first company of this type that was set up several years ago to separate the lending activity of Flanco, is currently up for sale and in talks with important strategic investors.

Domo, another electrical home appliances retailer, last year set up its own consumer loans company, Estima Finance, together with Romanian American Enterprise Fund (RAEF). The partnership between Domo and RAEF also involved the inclusion of RAEF on the list of Domo shareholders with a stake of 20%.
ionut.bonoiu@zf.ro