Authorities going to proclaim Brest Carpets bankruptcy

The statement was voiced at a meeting of the city’s economic managers on the results of the 2013 operations.

According to a charter97.org reporter, the event showed yet another time that industry is in a severe crisis in Brest. Thus, the chairman of the city executive committee Aliaksandr Palyshenkau tried to present as positive that last year the exports of the city’s enteprises grew by 21.5% counted in USDs. However, the paradox is that the profits of enterprises at the same time fell by a third, with the sales profitability decreasing.

According to Palyshenkau, the number of unprofitable enterprises in the city grew within last year alone by three times, and the amount of losses – by four times. As a result industry gives a little less than half of the local budget incomes (47%). This all led to Brest’s budget falling short 168 million roubles against the planned amount. For a greater cogency of the stated amount the executive committee’s chairman claimed that it equates to the opening of several kindergartens or 100 km of asphalt coverage in the streets.

The list of the city’s industrial outsiders has been the same for a number of years – Brest Carpets, Brestselmash, Brest Beer, Brest Plant of Electromechanical Appliances. It seems like the local authorities have no more illusions as to the possible positive change in the picture. The first deputy chairman of the region executive committee Mikhail Jukhimuk spoke at the meeting, saying that reorganization and bankruptcy mechanism should have long been launched as to Brest Carpets. The enterprise is deep in debt and those, who keep working there are freezing in their working places.

As to the situation at Brest Beer, which is also in a deep crisis (the stock has piled up worth of 6.4 billion roubles, although the output has fallen by two times in a year), the officials see a panacea in a private investor coming to the enterprise. Apart from that Jukhimuk said that region executive committee’s decision has already been prepared, according to which the property of Brest Furniture factory will we auctioned.