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Olympia Flexgroup to fight the downturn with franchising and reduced costs

Olympia Flexgroup has announced that it is intending to tackle the current economic crisis by reorganizing its company and turning it into a franchise system. According to the company, it succeeded in lowering its running costs in Holland, Germany, Switzerland and Poland by 30 percent during the first quarter of this year. The economic downturn has, the company says, had an effect on its business in Germany, Holland and Switzerland with its turnover there falling by 24 percent to 53 million euros.

The turnover of its companies in Spain, Italy and Portugal - which are up for sale - dropped even more, namely by 45 percent to 11.5 million euros. Faced with this difficult financial situation, Olympia Flexgroup AG is currently negotiating with banks to secure the group’s financing. Olympia is expecting its turnover to continue to fall during the second quarter and is intending to further reduce its running costs.

In the meantime, Olympia is planning to continue to expand its presence on the market by using its franchising model. During the first quarter, a number of company-owned branches were turned into franchise-run businesses. Olympia is part of Olympia Flexgroup, a European personnel services company with activities in seven countries, nearly 200 branches and over 18,000 employees. (kbp)

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