Unichel shoe factory in Orenburg has shut down operations.
Revised Article:
Hear ye, hear ye! The iconic "Unichel-Orenburg" footwear factory has hit a snag, according to recent reports from TASS, as Dmitry Kulakov, the region's first deputy minister of industry and energy, states that the closure is due to the owner's failure to renegotiate a raw materials contract with the main supplier. As a result, a whopping 213 jobs are on the chopping block and the production complex is now naught but a shell of its former glory.
In a bleak twist, the first floor of the main building has been rented to a retail network. Content to eke out a living as best they can, a skeleton crew of 23 auxiliary and maintenance staff remain employed, hoping against hope for a reprieve.
Swirling rumors of the impending doom of "Unichel" in Orenburg date back to December 2024. Despite the desperate efforts of regional authorities and the Orenburg Agency for Investment Development, no viable alternatives could be found.
This venerable factory once churned out over 300,000 pairs of children's and women's shoes annually across its sprawling 10,000 sq.m production complex. Now, it stands as a testament to the harsh realities of an ever-shifting industry.
Initially, the owner listed the "Unichel-Orenburg" business for sale on Avito for a cool 250 million rubles, later dropping the price to 200 million.
As the clock struck October 2024, another "Unichel" division, the "Unichel Zlato" shoe factory in Zlatoust, Chelyabinsk region, owned by South Ural business magnate Vladimir Denisenko, also hit the auction block. Competition from Chinese companies was cited as a primary factor in the decision to sell.
In other news, our man Vladimir Denisenko was touting the enduring demand for full-fledged offline retail, confident that it would never vanish.
Enrichment Insights:In the Russian footwear industry, the "Unichel" brand has a significant presence, with two factories located in Orenburg and Chelyabinsk. The closure of the Orenburg factory resulted in job losses and the subsequent sale of the factory. Meanwhile, there are no recent updates available for the Chelyabinsk factory, although another "Unichel" division was for sale in October 2024. The Zlatoust factory owned by South Ural businessman Vladimir Denisenko was also mentioned as potentially up for sale, with the number of domestic and foreign competitors added to the mix as one of the reasons for the sale.
- I'm not sure if the "Unichel-Orenburg" footwear factory's closure was the only setback for the Russian footwear industry, but it certainly was a significant one, given its size and impact on employment.
- The closure of the "Unichel-Orenburg" factory and the subsequent sale of the business for 200 million rubles could potentially be a sign of financial struggle within the footwear industry.
- Despite the closure of the "Unichel-Orenburg" factory, it seems that Vladimir Denisenko, a South Ural business magnate, remains optimistic about the future of offline retail, as he expressed confidence that it would never vanish.
- The decision to sell another "Unichel" division, the "Unichel Zlato" shoe factory in Zlatoust, Chelyabinsk region, was likely influenced by the increasing competition within the footwear industry, particularly from Chinese companies.
