Kistochki

History

2022: Company Default Announcement

As it became known on May 16, 2022, a large network of manicured and pedicured salons Kistochki of the St. Petersburg entrepreneur Igor Rudzia (founder of the group of companies GruzovichkoffTaksovichkoff".," as well as co-owner of the food delivery service "Dostaevsky") announced a default. The company was unable to pay off ruble bonds.

In 2019, Kistochki issued bonds totaling 40 million rubles. Almost half of them spent on the opening of two salons in Moscow, 5 million rubles on covering losses, another 5 million rubles on the development of the salon in St. Petersburg.

The network of manicured salons Kistochki founder "Taksovichkof" announced a default

Kistochki said that only a quarter of bonds can be redeemed at face value - this is 10 million rubles. Under the remaining package of obligations, the company will look for ways to restructure the debt.

Marketing investments did not materialize due to the COVID-19 coronavirus pandemic. Also in 2020, salons in Moscow suspended work due to the pandemic, and after they were finally closed.

Investors are unlikely to seek bankruptcy of the company and may agree to restructuring, since otherwise it will be very difficult for them to return their funds, says InfoLine-Analytics CEO Mikhail Burmistrov. He told Vedomosti about this.

Finam analyst Alexei Kovalev says the issuer will have to negotiate at least with large bondholders.

I risk assuming that they are hardly interested in the issuer's default - an unsecured issue, "he told the publication.

According to Burmistrov's forecasts, after the removal of most coronavirus restrictions, the company will not have problems for further development. The pandemic really hit this market hard. But in the context of the crisis (caused by the special operation of the Russian Federation in Ukraine and the sanctions that followed it), a model focused on the low cost of services looks quite viable, he added.^[1]

Notes