12.Oct .2020 17:45

Meat Producer “Loidl” Has Closed

Meat Producer “Loidl” Has Closed
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Meat producer "Loidl" has closed. Mikheil Okujava, the owner and director of the company's 39% stake, confirmed to BM.GE.
"The factory has stopped working for now," Mikheil Okujava said. The director names the lack of working capital as the main reason for the suspension of the company.
"Many reasons have led us to this decision - the GEL exchange rate, the price of raw materials, the decline in purchasing power of the population ... We produced relatively high-quality products. Therefore, we had a relatively high price. Due to the covid-19 pandemic, the number of sales dropped, and the factory could not sustain itself. At this stage, we let the production workers go home," said the company director.
Mikheil Okujava does not have a specific answer to whether the factory will resume work.
"I won't be able to answer you ... it is an unpredictable situation, and therefore, we cannot give a specific answer. If tomorrow or the day after something changes radically, it will also affect us, but in the given situation, I do not think so. If I put a rational price for the production of this quality product, based on the GEL exchange rate and the price of meat, it turns out that it is impossible to sell it," he said.
The director of "Loidl'" does not talk about specific numbers, but says that its loss is quite large.
According to the business register, Lloidli Ltd was registered in 2005. The company has three owners:
  • 42% shareholder is Austrian citizen Tinatin Apkhaidze.
  • 39% shareholder is Mikheil Okujava.
  • 19% owner of the company is Besik Apkhaidze.