Famous Romanian shoe factory goes into insolvency

Clujana, one of the oldest shoe factories in Romania, went into insolvency, according to a decision of the Cluj Specialized Court, cited by Mediafax.

The company has difficulties in repaying over RON 13 million (EUR 2.8 million) worth of historical debts to the tax authority ANAF, which was accumulated during 2013-2014, according to Romania-Insider.com.

However, the factory has orders and contracts to continue its activity, according to the company’s general manager Florin Gliga. He said that the company has the financial resources to continue its activity and pay its historical debt, but lacks the liquidities to pay the historical debts. This problem can be solved by asset sales, as the company owns valuable assets that it doesn’t use for production. However, the company filed for insolvency to avoid the fire sale of its assets by ANAF.

Clujana currently has 378 employees and is controlled by the Cluj County Council. The company had a turnover of EUR 2.2 million in 2016.

 

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