VILNIUS — Supermarket chain Maxima this week reduced its share capital by 795 million litai (€230 million) to compensate for losses incurred by the group’s companies during 2009.

Maxima, the Lithuanian budget supermarket chain that markets itself as the inexpensive alternative for groceries, had a harrowing year in 2009 as consumers tightened their [private_supervisor]belts and only bought essential items. The company had to reduce its prices a number of times to stay competitive in shrinking retail markets in the four countries that it operates.

The decision to reduce the share capital was made by the shareholders of the company on Dec. 30, 2009, and registered on March 4 this year, Giedrius Juozapavičius, manager of the image and communication center of Maxima Group, told Baltic Reports.

“The authorized capital of the MAXIMA GROUP, UAB, was reduced by 795 million litas (230,25 million EUR) in order to compensate for the losses incurred by the companies,” Juozapavičius said.

Initial silence over the matter from the company fueled speculation about the reasons for the reduction in capital.

Local media reported that the company spent a further 12 million litai (€3.4 million) from revenue to keep prices lower than in competing stores.

“We can say that in economically difficult times we are forced to buy [customers’] revenue — we spend money to preserve the reduced prices of products. The company spent millions. It is the price we pay to survive in competitive markets,” the group’s CEO Gintaras Jasinskas was quoted as saying in the Verslo Žinios business newspaper.

Raised value added tax rates eliminated some of the company’s profits in Lithuania, particularly on fresh produce.

Maxima operates in Lithuania, Latvia, Estonia and Bulgaria. It is owned by VP Grupė. [/private_supervisor] [private_subscription 1 month]belts and only bought essential items. The company had to reduce its prices a number of times to stay competitive in shrinking retail markets in the four countries that it operates.

The decision to reduce the share capital was made by the shareholders of the company on Dec. 30, 2009, and registered on March 4 this year, Giedrius Juozapavičius, manager of the image and communication center of Maxima Group, told Baltic Reports.

“The authorized capital of the MAXIMA GROUP, UAB, was reduced by 795 million litas (230,25 million EUR) in order to compensate for the losses incurred by the companies,” Juozapavičius said.

Initial silence over the matter from the company fueled speculation about the reasons for the reduction in capital.

Local media reported that the company spent a further 12 million litai (€3.4 million) from revenue to keep prices lower than in competing stores.

“We can say that in economically difficult times we are forced to buy [customers’] revenue — we spend money to preserve the reduced prices of products. The company spent millions. It is the price we pay to survive in competitive markets,” the group’s CEO Gintaras Jasinskas was quoted as saying in the Verslo Žinios business newspaper.

Raised value added tax rates eliminated some of the company’s profits in Lithuania, particularly on fresh produce.

Maxima operates in Lithuania, Latvia, Estonia and Bulgaria. It is owned by VP Grupė. [/private_subscription 1 month] [private_subscription 4 months]belts and only bought essential items. The company had to reduce its prices a number of times to stay competitive in shrinking retail markets in the four countries that it operates.

The decision to reduce the share capital was made by the shareholders of the company on Dec. 30, 2009, and registered on March 4 this year, Giedrius Juozapavičius, manager of the image and communication center of Maxima Group, told Baltic Reports.

“The authorized capital of the MAXIMA GROUP, UAB, was reduced by 795 million litas (230,25 million EUR) in order to compensate for the losses incurred by the companies,” Juozapavičius said.

Initial silence over the matter from the company fueled speculation about the reasons for the reduction in capital.

Local media reported that the company spent a further 12 million litai (€3.4 million) from revenue to keep prices lower than in competing stores.

“We can say that in economically difficult times we are forced to buy [customers’] revenue — we spend money to preserve the reduced prices of products. The company spent millions. It is the price we pay to survive in competitive markets,” the group’s CEO Gintaras Jasinskas was quoted as saying in the Verslo Žinios business newspaper.

Raised value added tax rates eliminated some of the company’s profits in Lithuania, particularly on fresh produce.

Maxima operates in Lithuania, Latvia, Estonia and Bulgaria. It is owned by VP Grupė. [/private_subscription 4 months] [private_subscription 1 year]belts and only bought essential items. The company had to reduce its prices a number of times to stay competitive in shrinking retail markets in the four countries that it operates.

The decision to reduce the share capital was made by the shareholders of the company on Dec. 30, 2009, and registered on March 4 this year, Giedrius Juozapavičius, manager of the image and communication center of Maxima Group, told Baltic Reports.

“The authorized capital of the MAXIMA GROUP, UAB, was reduced by 795 million litas (230,25 million EUR) in order to compensate for the losses incurred by the companies,” Juozapavičius said.

Initial silence over the matter from the company fueled speculation about the reasons for the reduction in capital.

Local media reported that the company spent a further 12 million litai (€3.4 million) from revenue to keep prices lower than in competing stores.

“We can say that in economically difficult times we are forced to buy [customers’] revenue — we spend money to preserve the reduced prices of products. The company spent millions. It is the price we pay to survive in competitive markets,” the group’s CEO Gintaras Jasinskas was quoted as saying in the Verslo Žinios business newspaper.

Raised value added tax rates eliminated some of the company’s profits in Lithuania, particularly on fresh produce.

Maxima operates in Lithuania, Latvia, Estonia and Bulgaria. It is owned by VP Grupė. [/private_subscription 1 year]

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