Bankruptcy whirlwind sweeps from retail to production

Increasingly more producers in the food industry will become
insolvent this year, after food retail chains were the most
affected in 2009, believes George Frincu, president of bakery
producer Vel Pitar.
“I think 2010 will be more difficult than 2009, because there
will be more bankruptcies than last year. One can feel this because
suppliers no longer accept longer payment deadlines, and
increasingly more producers are putting their production facilities
up for sale. In addition, there are many companies, which, due to a
lack of liquidity, temporarily suspend production,” says the
president of the group with 12 bakery plants and 4,500 employees,
held by American investment fund Broadhurst.
Big producers are already swamped with letters from small
entrepreneurs asking them to take over their businesses only one
month into the year. “2010 will be the year when companies will pay
for the mistakes made by managers in the years of economic growth,”
added the head of Vel Pitar.