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In a surprising but strategic move, Ermes Department Stores Plc announced that it is selling off all four ERA department stores to Gencom Ltd., and the official sale price is just €1.
That’s right, €1.
But while the symbolic price tag grabs attention, there’s a lot more beneath the surface.
According to Ermes, this deal includes the transfer of major financial responsibilities to the buyer. Gencom will take over ERA’s long-term lease agreements, unpaid supplier orders worth around €4.5 million for the Spring/Summer 2025 season, and, most importantly, all of ERA’s staff. The new owner is also inheriting the stores’ furnishings, equipment, and even the customer loyalty program, UNIQUE.
The sale still needs approval from the Cyprus Competition Commission and a few other legal checks before it’s final.
Why is Ermes selling?
ERA’s department store business has been racking up losses for Ermes, about €1.3 million in 2024 alone. Turning things around would have required heavy investment and more cash flow than the company was willing to commit.
Instead, Ermes is cutting its losses. By offloading the stores and their financial baggage, the company is clearing its books and will even record a €1 million accounting profit, mostly due to changes in lease accounting rules under IFRS.
Ermes, part of the CTC Group, says the decision is both fair and financially sound, with no conflict of interest among company insiders.
What does this mean for shoppers and employees?
The good news for everyday Cypriots is that the stores won’t be shutting down; they’re being handed over to new management. Staff are keeping their jobs, and customers can still expect to use their UNIQUE loyalty points. While the name on the paperwork is changing, operations should carry on without major disruption.
It’s still unclear what Gencom’s long-term vision is for the stores, but for now, it’s business as usual, just with new hands at the wheel.
