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L. Popov and his brother Mark said they founded the store about two years ago. The men traded in household chemicals, cosmetics, and other body care products.
“We buy products in German sales outlets, get a good price and open such a store in Vilnius,” the businessman said openly.
So far, the store has been divided in two, but, as they said, everything will change soon: the store will be closed.
“We made that decision two and a half months ago,” Popov added, because the sheer quantity of goods ordered before the quarantine and the labor money spent changed men’s legs.
“We have bought a lot of products and spent all our work money. Later it turned out that during the quarantine it was necessary to live, pay the accountant, other things from the operating system.
There could have been cash if we had worked, acted, but we had completely closed the entire quarantine, “said the businessman about the government’s decision to close all stores other than food as of March 16.
According to him, while a large number of businesses lived after physical stores closed and generated income from e-commerce, his company was already behind on the train.
“It just came to our attention then. Imagine we had 7.5 thousand by codes. Different products. Each of them needed a description, photos, etc. Imagine how much I work here. Here, until you believe, until you do everything, it would be over. quarantine, ”he said.
It is true that the entrepreneur was at least happy that the company did not have to pay the rent for the store premises during a difficult period, because they had a loan contract in exchange for the repairs that were made there before.
According to L. Popov, the company owned by the brothers after a while also received state support, which amounted to about 1.7 thousand. EUR.
“It just came to our notice then. The money was given to us just to hold our hands. We had postponed paying taxes to the STI, Sodra, but after the end of the quarantine we had to pay them, so all their money was it was.
Of course, maybe it is good that he has given at least that, but we are left without salaries, without earnings, without billing, ”said L. Popov.
Company bankrupt due to virus
© Readers photo
Today, a sign announcing the bankruptcy of the business hangs next to the brothers’ store.
“We have not closed the company yet, only the store. Later, we will see something, if we do not invent anything, we will also close it,” he said openly.
When asked if there were any ideas to borrow to save the business to cover the losses incurred during COVID-19, the man explained that neither they nor his brother had even considered that option.
“There were no ideas to borrow and keep the store like that, because now banks and other institutions have a hard time lending money, which also costs a large percentage, which is convenient for the bank, but not for us,” Popov explained.
“It was also very strange that the large stores and restaurants could function during the quarantine, but the small business was closed and crushed.
The profits of the stores grew, they made more money, as well as all the parcel services, Barbora, etc., and others … where is the small business? Everything was closed.
You can say that the state itself helped ruin that small business, “he said.
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