Jaroslav Chrapko has built one of the fastest growing companies in the region from his e-commerce company Dedoles, which operates in more than twenty countries and whose sales last year reached 93.5 million euros.
However, after rapid growth, the company got into trouble and its situation worsened to the point that on Wednesday, May 25, it asked the court for permission to restructure. Index magazine was the first to point this out.
After successful years, the giant in the field of e-commerce has a problem securing a sufficient amount of money for its operation. As Dedoles said in a press release, due to the dramatic decline in the e-commerce market, the war in Ukraine and general consumer uncertainty about rising inflation, the expected further growth has not materialized and the company is temporarily unable to repay all its liabilities on time.
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In response, the company reportedly took major rationalization measures, prepared a recovery plan and is entering the restructuring process. The plan focuses on active sales and cash flow improvements. At the same time, the company itself asked the court for protection from creditors, which should give it enough time to recover.
Over the past three years, Dedoles has increased its sales from 15 million euros to more than 90 million euros and is preparing for an ambitious growth program. In the past year, it therefore significantly increased the number of its employees and invested not only in marketing and brand building, but also in information systems and especially in the new unique semi-automated warehouse.
“In Dedoles, we have managed to build a unique business model that can respond to current customer needs, and we have become the largest Slovak e-shop,” said Jaroslav Chrapko in a press release.
Subsequently, the company began looking for more investors, but found that their interest was strongly affected by the fact that the entire e-commerce industry is experiencing a significant shock and recession compared to the period of pandemics and lockdowns. Although Dedoles still generates monthly revenues in the order of several million dollars, it has a problem securing enough cash at the moment.
“The fact that our model works well is evidenced not only by financial indicators in recent years, but also by the fact that despite difficult times, we are still able to generate sales, expand and sell our products. Dedoles therefore need time to recover, and we intend to use the legislative tools at our disposal to do this. We are not looking for a way to write off our debts, but on the contrary we want to repay our liabilities, “added Chrapko.
Part of the restructuring process is the active sale of goods that lie in the company’s warehouses. Dedoles has inventories whose value in terms of expected sales exceeds existing liabilities.
The company is also preparing to launch a new summer collection, including sales campaigns. Sales thus continue uninterrupted and the company distributes stored goods to customers.
“Implementing a recovery plan with the support and cooperation of creditors is a way for the company to return to the growth curve and gradually repay liabilities. We will pay our liabilities only by the fact that the company will continue to operate, “adds Jaroslav Chrapko.
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