ECONOMY

Attica is set to buy out Fokas

Attica Department Stores SA is very close to completing a deal for the acquisition of rival department store chain Fokas, Kathimerini understands.

The two have been in negotiations over the last few months with the involvement of their credit institutions and Deloitte consultants, with the final decision expected this week.

If talks bear fruit and a deal is struck, it will entail the even greater concentration of the department store sector in Greece, as the only major players will be Attica, the Notos Com group and the Hondos Center chain.

The management of the Fokas group was forced to redraft its strategy over the past year due to financial problems resulting from the economic crisis. Its sales dropped in 2011 to 48.9 million euros from 69 million in 2010, with losses staying put at 7 million euros per year.

Attica, on the other hand, has been following an aggressive policy determined by its owner, the Folli Follie group, and recently opened two more stores, in Thessaloniki and Lagonissi, south of Athens.