Conad has secured a portfolio of Realco supermarkets for €22 million

Conad Nord Ovest and Conad Centro Nord, acting as a joint bidder, have been awarded a lot comprising supermarkets and several properties belonging to Realco, a cooperative based in Reggio Emilia that is in the process of filing for a composition-with-creditors arrangement. The two retail cooperatives, members of the Conad system, were the only bidders to submit an offer to the Court of Bologna for lot number five, at a base price of €22 million, which comprises nine supermarkets with the related business units of the parent company Realco, as well as five properties owned by the company. The stores range in size from 400 to over 1,000 square metres, whilst around thirty employees at two stores directly managed by the Realco group will be changing employers.

In recent weeks, many names of large-scale retail chains have been mentioned, from Distribuzione Italiana to Carrefour-GS, from Crai to Migros, as well as Selex, Lidl, Eurospin, VèGè, all interested in Realco’s assets, which comprise around 130 supermarkets under the Sigma, Ecu and Economy brands, some of which are closed.

“Today, the plan for an indirect going-concern arrangement will be filed with the Court of Bologna,” explains Mattia Berti, financial advisor at Studio La Croce appointed to handle the arrangement proposal and negotiations with interested parties, to *Il Sole 24 Ore*. “We expect Realco’s direct operations to continue until no later than the end of July. By that date, there will be a new auction aimed at selling the remaining assets, including retail outlets, supermarkets, properties, and the headquarters in Reggio Emilia with its logistics hub.”

Next Wednesday, workers’ representatives will sit down at the crisis talks at the Regional Council with all the other parties involved. “In recent weeks, redundancy pay has been paid to all employees at the closed retail outlets as well as those at the head office, whilst a solidarity contract has been put in place for those at the logistics hub,” adds Laura Petrillo, Secretary of Filcams Cgil Emilia-Romagna, who, together with Fisascat Cisl and Uiltucs Uil, is following the dispute. The employment crisis remains for just over 450 employees of the Realco group, to which must be added around a thousand workers, including indirect staff and those in related industries.