Valeriy Shamotiy: millionaire and bankrupt
The rankings of the richest residents of Ukraine may soon lose the name of the Dnipropetrovsk businessman Valeriy Shamotiy, whose fortune was recently estimated at $147 million by the Ukrainian magazine "Focus," while the weekly "Komentari" mentioned an even larger figure – $182 million.
However, recently the entrepreneur has faced serious financial difficulties. Delays in wages and demonstrations of discontented workers are occurring at enterprises controlled by Shamotiy.
The story of Valeriy Shamotiy astonishingly resembles the fate of Svyryd Holokhvostov from the comedy "For Two Hares," who loved to say to those around him: "I’m not just anybody!" Similarly, Shamotiy tried to appear as a successful businessman and a prominent fashionista in recent years. He often appeared in glossy magazines, positioning himself as an example of a determined and successful businessman. In photographs, Shamotiy showed off Maserati cars (costing from $150,000) and talked to readers about his hobbies – fast driving and water sports. In one interview, he boasted of personally tasting Remy Martin cognac and selecting clothes from brands like D&G, Cavalli, Versace, and GFF for upscale boutiques. In short, like Holokhvostov, he knew a thing or two about dresses made from "foreign material" and "stylish cigarettes."
For a time, Shamotiy managed to pretend to embody the "Ukrainian dream" — according to the official version, he made his first capital creating leather jackets in the early 90s, and soon after founded the corporation "Logos", which was engaged in the trade of alcohol and tobacco, construction of luxury clubs and spas, and sale of scooters, jet skis, and expensive clothing.
However, examining media archives, one can find that Shamotiy’s name figured in unpleasant stories that indicate the Dnipropetrovsk entrepreneur’s "commerce" is, to say the least, dubious. For instance, Verkhovna Rada deputy Yuriy Karmazin sent inquiries regarding the sale of substandard and uncertified products by the corporation "Logos," and demanded an investigation into reports of the distribution of counterfeit alcohol.
Simultaneously, the "Bartolomeo" complex, built by the businessman for $2 million on the Dnipro Riverbank, was criticized monthly by ecologists and the relevant ministry department, accusing the "Logos" corporation of seizing protected shorelines. However, Shamotiy managed to hush these scandals, his machinations going unpunished — the businessman clearly "had luck.” As Holokhvostov said, "To a clever man with means, just a wave of the hand, and he can turn a dead thing into a living one."
However, a few months ago, the myth of a successful businessman from Dnipropetrovsk started bursting like a soap bubble. Salaries stopped being paid at enterprises controlled by the "Logos" corporation. For example, at the cognac plant "Tavria" in Nova Kakhovka, wages haven’t been paid for about three months, and the same situation is observed at the Crimean "Inkerman."
The reason is not the notorious economic crisis. Shamotiy’s debt to workers started accumulating back in 2006, during peak sales and highly profitable seasons, and even today, the alcohol industry hasn’t suffered significant losses. The Dnipropetrovsk entrepreneur simply showed that he can’t build a successful business empire for which the "Logos" corporation was advertised. On the contrary, Shamotiy increasingly resembles an adventurer who doesn’t know how to do business but continues to chase luxury — using "Tavria" and "Inkerman" funds, Shamotiy tries to support other "chic projects" that turned out to be unprofitable. As a result, "Inkerman" and "Tavria" have been deprived of working capital. In crisis conditions, the necessary, even minimal, modernization at enterprises isn’t conducted.
Shamotiy’s policy has already led to the plant in Nova Kakhovka facing about 42 million UAH in debt, with a similar situation at "Inkerman." The situation at the "Tavria" plant continues to worsen daily. Despite Shamotiy’s assurances of readiness to resolve wage arrears, workers protested last week.
Moreover, as workers claim, after gaining a majority in the supervisory board, Shamotiy conducted financial schemes to secure a $26 million loan from "Ukreksimbank" using "Tavria’s" assets. These funds were also directed to support Shamotiy’s unprofitable businesses, and part of the money was spent on purchasing the control package of shares from the plant’s workforce of "Tavria."
Vyacheslav Butko, an expert at the Center for Corporate Relations Research, confirms reports of major problems in Shamotiy’s company.
"The company has significant problems, it can’t settle with suppliers, which the latter actively report in the media. This, in turn, could foreshadow the company’s financial insolvency. The company owner, Valeriy Shamotiy, once considered this business non-core and prioritized development and the restaurant business," the expert noted in an interview with UNIAN.
For residents of Nova Kakhovka, it has long been understood: the "Tavria" plant turned out to be a "cash cow" for Shamotiy, with which he quickly made a fortune to continue living lavishly in Dnipropetrovsk, while "drowning" the enterprise in credit debts. It’s rumored the plant is being bankrupted by Shamotiy under agreement with "Tavria’s" competitors — there are whispers that this operation promises the Dnipropetrovsk businessman a hefty and, importantly, fast "kickback," measured in a number with seven zeros. It seems the "Inkerman" plant is facing a similar fate: Shamotiy has started selling the enterprise in parts – with media reports that 40% of shares have already changed ownership.
In the opinion of Valeriy Shamotiy’s former partners, building a long-term business cannot be considered the entrepreneur’s "forte." He is interested in projects that bring quick and significant money, while the legality of the methods is a tertiary matter.
Meanwhile, the "scandal" in Shamotiy’s wine business has already become public knowledge, and this might be a signal to those still considering him a partner in other spheres. It is possible that soon, Shamotiy will have to publicly declare, as Holokhvostov did once: "Why are you staring? Well, bankrupt, and bankrupt! And you think if I were rich, I would come to your trash heap?! Ignorance is outrageous! And I only needed your money!"
25 April 2015 г., 14:23
