The retailer’s president and large shareholder Igor Yakovlev has admitted that it faces a Rub8 billion claim (£166.4 million). However, the Russian media reported that a former top manager at the store group alleged the total is closer to Rub15 billion (£312 million). The arrears date back to 2004 and 2005.
It is understood that the Russian authorities have not yet filed formal charges, but are expected to make a final decision by April. The retailer plans to appeal against the bill and has two weeks to do so. Yakovlev said he would have to sell part of the business if the case is lost.
Last June, DSGi abruptly abandoned a plan to exercise an option to invest in the Russian retailer. The then chief executive John Clare said: “We have done comprehensive due diligence covering a host of things, including looking at other companies in Russia in the retail sector and beyond. Overall, the board has concluded it would not be in the interests of shareholders to pursue the option. That is about as much as I can tell you.”
No comment was available this week from DSGi on whether tax issues had triggered the decision.
Eldorado has more than 600 stores and controls approximately 20 per cent of the electricals market in Russia and the Ukraine. Eldorado had a total debt of US$1 billion (£495.9 million) last year, and a turnover of US$6 billion (£2.98 billion).
Russian daily newspaper Kommersant warned that the claims against Eldorado could signal the beginning of more checks on retailers.
Russia has become of increasing interest to foreign store groups expanding overseas. Retailers ranging from Swedish furniture giant Ikea to UK fashion group Peacocks are among those present in the Russian market.
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