Why are the "CenterObuv" stores closed in Russia?

In 2015, the network of discount discounter "CenterObwu" and Centro suffered a sorry fate. The stores began to be closed everywhere, the number of outlets in Moscow and the region, St. Petersburg, Kazan, Yekaterinburg, Chelyabinsk, Novocherkassk, Rostov-on-Don and many other cities with a million people decreased significantly. From everywhere the same question sounded: "Why are the shops of TsentrObuv closed?" There can be many grounds: small clientele, inflated prices, poor-quality footwear. But none of these reasons is typical for the brand "TsentrObuv" as it was known only recently. What then became the main reason for leaving the trading house from the Russian market?

What was the CenterObuv store?

People always looked for inexpensive and high-quality shoes. With the advent of the trading house "TsentrObuv" this problem resolved itself. The store exists since 1992. Just as many there is also its popularity. Since that time the company has gone a long way of development, as everyone had both ups and downs. The demand for TsentrObuvi was never questioned, the issue of the appearance of related products in stores: accessories, jewelry, handbags and tools for the care of footwear.

The assortment of this store has always been so huge that rarely people left there without at least one purchase in hand. In "TsentrObuvi" you could find shoes for every taste, style, age and sex, and all at quite reasonable prices. In addition, regular promotions were held. Of course, when the first closures began, many thought about why the shops of "CenterObuv" are closed. After all, people's love for this trading house was undeniable.

The reasons for closing the chain of stores in Russia

The company "TsentrObuv" has unfulfilled financial obligations since 2014. Already in early 2015, the store one after another showered with claims. For the most part, these are claims from landlords, logistics firms and advertising agencies. The bill goes to millions, and the amount is so huge that it immediately becomes clear why the shops of "CenterObuv" are being closed. Networks simply do not exist.

As of June 2015, the number of stores in Russia fluctuated around 1000. But the 2016 data will surprise anyone - there are only 53 outlets in the Russian Federation. And this is in view of the fact that 95% of the stores belong to the company itself, and only 5% - to the franchise owners.

Retail outlets continue to close, and debts are growing. A little more, and why the chain of shops "TsentrObuv" was closed will become obvious.

"TsentrObuvi" in Moscow is no more?

Given the fall in the ruble, it is not surprising that people began to significantly save. This was reflected in the purchase of shoes. The number of shops "TsentrObuv" in Moscow was reduced to a minimum. The cities with a million population stopped making significant profits. That's why the shops of "CenterObuv" are closed in Moscow.

In particular, litigation takes place with Moscow banks. Perhaps, very soon the trading house will announce its bankruptcy. All available stores in Moscow and the region (in the number of 25 outlets) can simply be closed, and then any reminder of this brand will disappear. Many people will lose their jobs. Even more citizens will have to buy shoes at a price.

The debt burden prevents the store from raising sales, and the way out of such a serious crisis seems to be simply impossible.

How are things going in St. Petersburg?

In St. Petersburg, the situation with the shops of "CenterObuv" is even worse. If in the past there were 33 stores in the city, now there are only 3 of them. There are a lot of people on the network asking about why TsentrObuv stores are closed in St. Petersburg. The only answer is a huge debt. In addition, many people talk about the poor attitude of the staff to the buyers. Opinions are divided: some prove the arrogance of customers, others - talk about aggressive sellers. In general, this attitude in stores is extremely unusual for St. Petersburg, the cultural capital of the Russian Federation.

A further reason for this decline in interest in these outlets is a significant increase in prices. In addition, since 2015 and in St. Petersburg registered appeals to the arbitration court from some partner companies. With "TsentrObuvi" they want to receive an amount of 60 million rubles. The court has already satisfied suits for 30 million, but soon the company will simply not be able to pay debts. So St. Petersburg is very much at risk of losing the shopping center "CenterObuv".

Kazan: "Farewell," CenterObuv "

Not spared the spontaneous closure of retail outlets and the territory of the Republic of Tatarstan. "Why are TsentrObuv stores closed in Kazan? Where now to find inexpensive shoes? "- resented the residents of the republic on countless forums and social networks. The reason for the closure is the same: huge debts. Shortly before such a large-scale crisis, the company developed a new brand - Centro. However, it is now clear that the new network of discounters did not save the trading house.

On the eve of the closure of all outlets in Kazan, CenterObuv arranged a total sale. Virtually all the goods were given for a pittance. Of course, the profit was not so great, but this money was repaid part of the debt.

Will "Center Shoes" appear again?

It is not known whether the company will cope with the internal crisis. Due to the lack of normal relations between the co-owners of the firm, it is not yet possible to predict anything. The trading house is now on the verge of bankruptcy, shares in this business are often resold, the owners are changing at great speed. With banks, too, cooperation has collapsed, trust has disappeared. The imposition of sanctions also inflicted damage on the company's activities. All these factors fully explain why the shops of TsentrObuv are being closed.

Even the new owner D. Vernemont is unlikely to bring the company into working order. "CenterObuve" goes to the bottom. However, it can be said with certainty that very soon a similar company will appear on the Russian market with an extensive selection of footwear and accessories. The presence of interchangeable goods and services is characteristic for Russia. There will be no "CenterObbuvi" - there will be something else. And it is likely that the memory of the network of shops will be erased very quickly.