Several subsidiaries of Lada-Servis, a major retailer of indebted car maker AvtoVAZ, are facing bankruptcy, Kommersant business daily reported on Wednesday.
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Since the beginning of the year, courts in various Russian cities have registered lawsuits seeking to declare 12 out of 76 subsidiaries of Lada-Servis bankrupt, the daily reported, according to Prime-Tass. Each subsidiary owns one showroom that sells AvtoVAZ cars.
Lada-Servis’ total debt presently amounts to RUB4bn, the daily said, citing a company spokesman.
Sales of Lada cars fell 44% year on year in January-September to about 270,000. Lada-Servis accounted for 26% of AvtoVAZ retail sales and generated sales revenue of RUB12bn in the period, down 67%, according to the paper.
