At the beginning of the full-scale invasion, foreign suppliers of electronics and household appliances "paused" cooperation with Ukrainian companies or left the market altogether, which negatively affected the operation of stores in Ukraine and led to a shortage of certain goods, UNN writes.
As noted by the Retailers Association of Ukraine (RAU) in a commentary to UNN, the refusal of some foreign suppliers to work with Ukraine has led to a shortage of goods and rising prices for some product categories.
This had an extremely negative impact on the financial condition and operation of electronics and home appliance retailers, as they were almost entirely dependent on imports. Moreover, this was happening against the backdrop of active hostilities, which also caused huge losses to Ukrainian business.
When vendors began to gradually resume operations in Ukraine, they changed the terms of cooperation with Ukrainian companies, in particular, they began to demand full overpayment instead of deferred payments.
This complicated the already poor financial situation of companies and forced them to adapt their business models to the new conditions.
Some Ukrainian companies had to resort to forced solutions in order to keep their business alive. For example, Eldorado, a hardware and electronics retailer, initiated an out-of-court reorganization procedure to settle debts to suppliers incurred as a result of the hostilities in Ukraine. At the end of April, the Kyiv Commercial Court approved a pre-trial rehabilitation plan, according to which Eldorado is guaranteed to repay 30% of the debt within five years, 30% is subject to write-off and the remaining 40% will be received by the creditors after compensation for the damage caused by Russia.
Add
Ukrainian entrepreneur, founder of the international business community Board Andriy Dligach notedthat the beginning of the large-scale invasion has brought many challenges to Ukrainian business representatives. First and foremost, it is the ability to provide their own employees and production facilities with safe working conditions, and therefore, the business began to relocate.
The second problem is the destruction of logistics routes, which resulted in shortages of both components and raw materials in most areas. The third problem faced by the business was financial resources, as everything became more expensive, the situation with lending deteriorated, debts became more expensive, etc.
In addition, the departure of personnel abroad also affected the business. Some employees remained to work remotely, but some resigned.