Business News

Peko Slides Back into Loss, Boss Stays on for Now

Trzic, 27 January (STA) - Footwear maker Peko saw revenues drop 12% last year and will post a net loss to the tune of EUR 4m according to preliminary estimates, but despite reports that the general manager will be sacked, the supervisory board decided on Thursday to let Marta Gorjup Brejc stay on for now.

"Considering the results, the plan for this year and the strategy to reverse the poor operating results, the supervisory board will decide in the coming months what to do," supervisory board chairman Robert Licen told the press after the session.

Peko's sales in Slovenia dropped from EUR 15.5m to EUR 13.6m, while exports were down by over a million euros to EUR 5.4m, Gorjup Brejc told the STA yesterday, blaming the ongoing crisis and the fall in purchasing power. Falling sales were coupled with rising costs of labour and inputs.

Gorjup Brejc was more optimistic about 2011, but she does not expect a major rebound considering the ongoing weakness of the economy. "If purchasing power continues to decline and living costs as well as the number of the unemployed rise, we cannot be too optimistic," she said.

Licen said today that the supervisors were looking hard at the situation, interested to see whether the management has the vision for the future. However, the supervisory board will also look into the past to decide whether an extraordinary audit might be in order.

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