Russian retail group Seventh Continent may declare bankruptcy in the next several months, local analysts have suggested.
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Brady Martyn, of Deutsche Bank, has downgraded Seventh Continent to ‘sell’ due to the devaluation in the company’s shares.
Seventh Continent was the only retailer whose shares Deutsche Bank recommended investors should sell at the current trading price of zero. The main reason for this poor rating was the lack of audited accounts for 2008, Martyn indicated.
According to analysts, finding a strategic Western investor could be one of the possible ways to overcoming the crisis for the company.
There were some rumours about a possible takeover by French Carrefour or even Wal-Mart but no official confirmation has been obtained.
Official sources at Seventh Continent declined to comment.
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