Lido reorganises itself as joint-stock company

29.01.2013, 16:22

Latvian catering chain Lido has been synonymous with its founder and, up to now, the long-running manager Gunars Kirsons for its entire 25-year existence, reports news2biz LATVIA.

Now, however, the chain has undergone a major change: it is now a joint-stock company and, even though Kirsons still is listed as the sole owner, the company now can consider new shareholders.

Moreover, Kirsons is no longer the board chairman of Lido. Instead, he is now the chairman of the supervisory board, and the new chair is the former board member Rita Auzina.

The company itself is not yet commenting on the change.

Lido has recently survived a brush with insolvency. Faced with severe debts from Kirsons' ambitious boom year projects, the company applied for legal protection. It is also the first Latvian company to successfully finish its legal protection proc-ess, reach an agreement with its creditors and return to solvency.

When commenting the recovery, Kirsons claimed that he has learned his lesson and will no longer rely just on his own judgement. The new management structure, then, could be an attempt to implement a team-based decision-making process.

Dating back to 1987 and predating the Latvian independence, Lido has grown to be seen as the essence of the Latvian cuisine. Its future plans, however, focus on ex-ports. It has a successful restaurant in Estonia, but so far it has had little success with expanding in other markets.

Earlier in 2012, Kirsons announced plans to enter the Finnish market, but the company has not yet reported on its success in the Nordic country. Kirsons has also named Sweden, Switzerland, Germany and Austria as other prospective markets.