Top-10 outsider companies of the year
Ending year was marked with the exit from the market of the large business representatives, operating in different economic sectors: from diamond mining to electronics multiple stores. Table 1 contains information about the largest companies in terms of revenue volume, started winding up procedure in 2019.
Companies entered liquidation both on voluntary basis, by taking decision by participants or shareholders, and by compulsory proceedings – as a result of bankruptcy. Liquidation in the form of reorganization (merging or acquisition) was not considered within this research.
In general, analysis of enterprises included in the ranking let define following reasons of winding up, that can be extrapolated to the economy:
- winding up because of assets consolidation by shareholder;
- loss of market because of competitive activity;
- extreme niche specialization: affected by variable environment companies are not able to cross over to output other products/services;
- inability to fulfill obligations to contractors;
- reputational loss because of participation in illegal transactions.
|Rank||Company||Legal status||Revenue, 2018 billion RUB||Activity||Main reason of winding up|
|1||JSC ALROSA - Nurba||Process of being wound up, 13.11.2019||44,1||Development of new diamond fields of Nakyn kimberlite field||Voluntary winding up by the decision of extraordinary shareholders` meeting. Market consolidation by parent company JSC ALROSA|
|2||LLC GAZPROM GAZENERGOSET||Process of being wound up , 26.04.2019||20,2||Sale of oil, gas condensate of oil processed products||Voluntary winding up by the decision of extraordinary shareholders` meeting. Market consolidation by parent company LLC GAZPROM MEZHREGIONGAZ|
|3||JSC ZHIROVOI COMBINAT||Process of being wound up , 03.04.2019||19,9||Manufacture of mayonnaise sauce and margarine, ТМ Saratov provansal||By sole shareholder was taken a decision on winding up because of the inability to pay debts to creditors: JSC Rosselkhozbank and LLC Rusagro group|
|4||JSC FOREIGN TRADE COMPANY FOODLINE||Process of being wound up , 28.03.2019||7,3||Import of food products from EU countries||Voluntary winding up by the decision of extraordinary shareholders` meeting. Food embargo, that Russia in 2014 imposed on western countries; 80% of business accounted for foreign contracts. As a result of counter sanctions revenue has more than three times decreased.|
|5||LLC BP KZ-KURSK||Process of being wound up , 08.02.2019||6,7||Meat processing production||Declared bankrupt|
|6||LLC INGKA SENTERS RUS PROPERTIE||Process of being wound up , 19.11.2019||5,9||Interior design in IKEA multiple stores||Voluntary winding up by the decision of extraordinary shareholders` meeting. Corruption charged (commercial bribery) of manager of the company|
|7||LLC KEY||Process of being wound up, 28.06.2019||4,8||Saint-Petersburg electronics multiple stores KEY||Voluntary winding up by the decision of extraordinary shareholders` meeting. Market consolidation by competitor of LLC DNS RETAIL (brand DNS)|
|8||LLC UNITED PRODUCTION COMPANY||Process of being wound up, 10.12.2019||3,9||Supply of production equipment: cables, transmitters, automation devices||-|
|9||LLC SK STRATEGIYA||In Process of being wound up, 23.04.2019||3,9||Construction of accommodation units in Moscow||Declared bankrupt|
|10||LLC VELES-GRUPP||Process of being wound up, 18.07.2019||3,8||Distribution and logistics of basic goods for multiple stores||Decision on winding up was taken by sole shareholder|
Apart from the above mentioned reasons, companies are being wound up compulsorily by the decision of the Federal Tax Service of Russia. Main reason is non-delivery of tax accounts or non-correction of unreliable data to the Unified Register of Legal entities of Russia. However, this information concerns more shell or left off companies, and not active companies.