M.Video Closes Hundreds of Stores and Delays Payments to Sellers

The retail chain 'M.Video' is facing financial difficulties and has begun delaying payments to sellers on its marketplace. Some sellers report that the repayment of debts for May and June is only possible after filing pre-trial claims. Other entrepreneurs note a lack of communication from the company, as managers have stopped responding. 'M.Video' denies the existence of a crisis, claiming that settlements with partners occur regularly and that delays are related to additional reconciliations. The Russian Association of E-Commerce Market Participants describes the situation as a serious problem. Experts point out that 'M.Video' is a small sales channel, and the delays in funds undermine entrepreneurs' trust. Payment issues have arisen against the backdrop of the company's deteriorating financial condition, caused by an economic slowdown and a decline in purchasing power. In the first half of the year, the retailer's revenue decreased by 15 percent, and its net loss reached tens of billions of rubles. Due to falling sales, the management of the chain plans to close up to 30 percent of its stores by 2026 out of nearly 900.

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