Is Octavian Radu preparing to close Diverta Magheru?
Octavian Radu, owner of insolvent bookstore chain Diverta, is
preparing a back-up plan for the potential closure of the network's
biggest store, Diverta Magheru, by renting 1,400 square metres in
the same area, on the former location of the Princess casino,
previously occupied by Trocadero restaurant. The restaurant has
gone down in Bucharest's history as the meeting place of bankers
and economists in the early 90s, with Mugur Isarescu and Eugen
Dijmarescu, former vicegovernor of the NBR (National Bank of
Romania) being clients of the restaurant. "The opening in August of
the Diverta Academiei bookstore will ensure a back-up in case of a
potential closure of the Magheru store. It remains to be seen how
negotiations to cut rent will go," said Amalia Buliga, CEO of
Diverta, which last year posted a 30 million-euro turnover. Diverta
bookstores have been insolvent since May, after accumulating a 10
million-euro debt. Buliga also specified the investment in Diverta
Academiei was minimal, considering the "acceptable" rent. By
contrast, the 1,800 square-metre space on Magheru was the most
expensive rental contract in the group's history, amid 1 million
euros in rental guarantee costs.