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Croatia's Cakovecki Mlinovi unit Vrazap files for bankruptcy

Author Annie Tsoneva
Croatia's Cakovecki Mlinovi unit Vrazap files for bankruptcy Author: surlygirl. Licence: Creative Commons, Attribution 2.0 Generic

Croatian food producer Cakovecki Mlinovi [ZSE:CKML] said that its subsidiary Vrazap, a chain of bakery stores, is going to enter a bankruptcy procedure.

At the request of Vrazap, the Commercial Court in Zadar decided to initiate preliminary proceedings to establish whether conditions exist to launch a bankruptcy procedure, Cakovecki Mlinovi said in a filing to the Zagreb bourse on Thursday.

Zadar-based Vrazap was established in 1998. It became part of Cakovecki Mlinovi in 2007.

According to media reports, in its best years the company used to have some 80 employees and its products were available in 210 sales outlets.

Vrazap's net loss widened to 2.79 million kuna ($431,000/ 371,000 euro) in 2020, following a net loss of 1.06 million kuna in 2019, Poslovni Dnevnik business daily reported.

Cakovecki Mlinovi's shares traded at 81.50 kuna intraday on Thursday on the Zagreb bourse, down 0.61% compared to the last closing price.

(1 euro= 7.511 Croatian kuna)