Published: 2009-10-08 09:11:41 CEST
Tallinna Kaubamaja - Company Announcement
SELVER INTENSE TO FREEZE ITS ACTIVITIES ON LATVIAN RETAIL MARKET
A-Selver AS is planning to freeze the activities of its subsidiary Selver
Latvia SIA, which was created two years ago for operating on the Latvian retail
trade market. The sudden deterioration of the economic environment of Latvia
has brought losses to Selver Latvia SIA that mean the company has been unable
to meet the expectations it had at the time the decision to expand to the
Latvian market was made. The loss made by SIA Selver Latvia in 2007 was 2
million kroons and the loss in 2008 amounted to 18 million kroons. The net loss
made by the company this year may be as high as 100 million kroons (6.4 million
euros). 

Selver Latvia SIA owns six operating stores the first of which was opened in
December 2008. A-Selver AS intends to freeze the activities of its subsidiary
Selver Latvia SIA by closing all six stores in Latvia and laying off 220
employees. 

Detailed information about the further action plan of Selver Latvia SIA and the
one-off costs associated with the freezing process will be published through
the stock exchange system this year. 

Raul Puusepp
Chairman of the Board
Phone +372 731 5000