Maga Foods has found a way to survive

A company on the sanctions blacklist has avoided bankruptcy thanks to ownership changes.

A producer of vegetable salads from near Warsaw, Maga Foods, was placed on the Ministry of Internal Affairs and Administration’s (MIAA) sanction list in April. The ministry concluded that the company was linked to a Russian oligarch. Although this was contradicted by data from the National Court Register and the Central Register of Real Beneficiaries. Appeals and interventions did not help. The company’s operations were frozen, and contractors began to turn away from it. However, the company came up with a way to survive – ownership changes. It was eventually taken over by Brandez. Its shareholders include 53 Maga Foods employees, including CEO Piotr Pawinski. As a result, the Ministry of Internal Affairs removed it from the blacklist.

The company has resumed operations. However, it will be difficult for it to make up for the losses caused by the forced freeze of operations, which lasted four months. It managed to regain its two largest customers, providing the bulk of its revenue. Most of the smaller ones, however, have left for competitors. The company has reached an installment agreement for debt repayment with 80 suppliers. It is challenged by new, much higher electricity rates and product costs. The company must look for savings. However, it hopes to make a profit next year.

Source: https://www.pb.pl/maga-foods-odradza-sie-z-popiolow-1166071