22 Sep 2009 15:39

Operating company of Mir electronics chain files for bankruptcy

MOSCOW. Sept 22 (Interfax) - Movitrade LLC, the operating company of the Mir electronics chain, has filed for bankruptcy with the Moscow Arbitration Court.

According to the SPARK database, Movitrade is wholly owned by CJSC Mir Group.

When Mir placed bonds in late 2006, Movitrade was the chain's main operating company, handling all financial transactions.

Mir has closed about a third of its stores since the start of the year. The chain is now comprised of 56 stores compared to 72 on January 1. The company said it decided to close stores because of a roughly 30% decline in demand and the lack of profit at some stores.

The first Mir store opened in Moscow in 1993. Alexander and Yevgeny Kabanov own the chain. Sales revenue totaled 19.5 billion rubles in 2008.