Intertop retailer estimates initial loss at UAH 450 mln after main warehouse destroyed
The preliminary amount of Intertop's direct losses following the destruction of its main warehouse in a Russian attack is estimated at UAH 450 million, Intertop Ukraine CEO Serhiy Badritdinov said.
"The preliminary value of direct inventory losses amounts to UAH 450 million. Unfortunately, it is impossible to fully compensate for losses of this scale. Our main focus now is to restore inventory together with our partners and suppliers as quickly as possible, rebuild our logistics processes, and ensure the stable operation of our stores, website, and mobile application," Badritdinov said in an interview with the Retail Association of Ukraine.
According to him, the company lost inventory from its current collections, as well as newly delivered fall-winter collections. The loss of logistics capacity and inventory will affect the company's growth plans, forcing it to reconsider some of the store openings scheduled for the fall.
Badritdinov said that diversification of inventory helped reduce the scale of the losses.
To support affected businesses, the government could introduce a clear mechanism for compensating verified losses, including allowing part of the losses to be offset against future corporate income tax or VAT payments, providing affordable preferential financing for recovery, and temporarily easing the regulatory burden, the Intertop Ukraine CEO believes.
"And finally, there should be equal rules for Ukrainian businesses and foreign online platforms. Ukrainian companies pay taxes, create jobs, and invest in the country, so they should not find themselves at a competitive disadvantage. We see that Europe is also revising its approach to taxing foreign marketplaces. Ukraine should also move toward a model in which comparable rules apply to everyone selling to Ukrainian consumers," Badritdinov said.
As reported, a Russian attack on August 5 destroyed MTI Group's main logistics hub – the high-tech Class A automated DENKA LOGISTICS complex in the village of Chaiky, Kyiv region, where Intertop Ukraine's warehouses were among those located.