site.btaPeople’s Store Management Defends Operations Amid Claims of Empty Shelves, Closure Decision

Despite highly competitive prices and strong consumer demand across all stores operating under the state-run People’s Store in recent months, stock levels have been maintained thanks to well-organized logistics, the company’s management told BTA in response to claims of empty shelves.

The statement said that more than 500,000 units of goods have been delivered to stores in recent months and that at no point have stores been left without supplies. Newly joined locations are stocked according to a pre-arranged schedule, with an average of about 500 kilogrammes of products delivered per store.

Addressing claims of poor financial health, the management said the company currently has approximately EUR 4.8 million in assets, including EUR 4,568,795.74 in cash in bank accounts, EUR 66,202.77 in inventory at purchase value, EUR 92,157.42 in receivables from suppliers, and EUR 59,924.49 in other assets.

“We respect the minister’s right to take such a decision in his capacity as the company’s principal, although we consider it premature, as projects of this kind do not become profitable within three months—and that was never our goal,” the management said, adding that they will provide full cooperation within their authority until the expiration of their notice periods.

The company also voiced regret over the decision to discontinue what it described as the only currently functioning state instrument that, amid strong inflationary pressure and a sharp decline in living standards, has effectively supported the supply of food products at genuinely affordable prices in smaller settlements.

Earlier on Wednesday, the Board of Directors of People’s Store submitted their resignations. This was followed by an order from caretaker Agriculture and Food Minister Ivan Hristanov to shut down the chain. According to the minister, in the first three months, revenues reached BGN 420,000 against projected revenues of BGN 1.48 million, less than one-third of the target. Over the same period, several individuals received a total of BGN 170,000 in remuneration, he added.