Flamingo is now worth as little as three of its stores

The stock market value of IT&C and home appliances retailer Flamingo International (stock symbol FLA) declined 94% in the past year, from 75 million euros to 4.8 million euros, due to the generalised fall of the Stock Exchange, as well as to the negative macroeconomic outlook affecting the sector where the company is operating. The situation was different last year, when the company invested 1.5 million euros in opening a 3,000 square-metre Flanco World store. Flamingo had more than 110 stores with an overall area of 56,900 square metres at the end of the year. After its stock exchange listing in August 2005, the company was appraised at 55 million euros, while its peak value, in mid-2007, reached 100 million euros. Flamingo’s shares lost 10% on Thursday and stagnated on Friday, after losing over 50% in the past month, amid a 10% decline in sales in December. The company is currently operating on a dwindling market, and facing a rise in funding costs. The company had total debts worth 325 million RON (81 million euros) at the end of September, with most of them falling due in less than one year, according to the latest report.