SANGI STYLE DROGERIE CHAIN FILED FOR BANKRUPTCY

The business of Dmitry Shcherbakov, which used to bring significant dividends, is now bursting at the seams. Another company uniting a chain of discounter stores under the Sangi Style trademark was declared insolvent On July 20, 2020.

The bankruptcy proceedings introduced by the court will last six months. Nikolay Rudenko, who was appointed by the court to be the insolvency administrator, will have to deal with the company's debts.

Sangi Style LLC went bankrupt on the initiative of Sberbank.

During the court proceedings, Sberbank was replaced by SBK PLUS LLC. The lawsuit was filed back in February 2019 because of the special bail, in which the company turned out to be a partner of another network - Russian Style-97 LLC.

Both companies were part of a group of companies that also includes a logistics company, real estate agency (Sevkavspetstorg-2) and the activities of several individual entrepreneurs. Russian Style-97, also owned by Shcherbakov, was primarily engaged in the wholesale trade. The company acted as a supplier for Sangi Style, providing over 80% of all sales through this channel. At the same time, the volume of revenue for the entire group, according to experts, reached 12 billion rubles in 2014.

In 2016, Russian Style-97 received a go-ahead from Sberbank to open a credit line almost until the end of 2018.

However, after the debt of 433 million rubles had not been returned by the beginning of 2019, Sberbank filed a lawsuit for bankruptcy of the company.

By July 2020, it came to the bankruptcy proceedings. The fate of the main borrower was shared by the guarantor in the person of Sangi Style - he was unable to repay the debts, the amount of which exceeded 3.5 billion rubles. What now will happen to the company founded in 1999?    

In 2008, it was the economic crisis that allowed the company to quickly increase its turnover, having started an active expansion in the market of non-food products. By 2010, the Krasnodar chain has become the largest retailer, say the experts.

However, by 2015, the company began to lose in the competition with another well-known company, Magnit.  

When the number of Sangi Style outlets did not reach a thousand, the Magnit Cosmetic chain already had 1,163 stores. By 2018, Sangi Style, despite significant revenue of 6 billion rubles, ended the year with losses for the first time.