Among the main problems that pushed the La Plăcinte chain to collapse were: the devastating impact of the COVID-19 pandemic, which drastically reduced revenues; the explosion of inflation and rising operating costs – more expensive raw materials, huge utility bills and rent; declining revenues and lack of liquidity to cover its debts and the inability to obtain additional financing amid creditors’ distrust.
“Experience shows that, regardless of the field of activity, no company is fully insured against financial risks or unstable market conditions. As in the case of a human being, illness is not always caused by negligence, but can arise due to unpredictable factors,” said Dorin Ciobanu, who was appointed temporary administrator of the insolvency procedure.
