Arbat Prestige Loses Scent
Moscow City Court has upheld the chosen judicial restraint for Arbat Prestige co-owner Vladimir Nekrasov, who was detained on tax evasion count. Lawyer of the businessman, Alexander Dobrovinsky claims his client was offered to sell business to go at large but he refused to do it. Meanwhile, the biggest suppliers of chain store, including United Europe, ended any cooperation with it. If the shipments don’t resume in the nearest term, Arbat Prestige will close in a few weeks, the market competitors forecast.
Interior Ministry’s prosecutors brought January 23 an action against one of Arbat Prestige divisions. The charges set forth tax evasion of 49.511 million rubles from January 2005 to December 2006. Nekrasov was arrested the same day, and Ostankino Court ruled January 24 that detention would be the judicial restraint for the businessman.
During yesterday’s hearing in the Moscow City Court, Nekrasov’s lawyers Alexei Minchin and Alexander Sadukov claimed the prosecuting party bases assumptions on personal preference exclusively and urged to release their client on bail of the said 49 million rubles, to no avail though.
Quite a few perfume and cosmetics suppliers halted cooperation with Arbat Prestige in the wake of Nekrasov’s arrest. Co-owner of United Europe Igor Denisov said his contract with Arbat Prestige expired in late 2007 and its resumption is being negotiated now. United Europe is the exclusive distributor of Nina Ricci, Paco Rabanne, Hugo Boss, Dolce&Gabbana, Moschino, Salvador Dali, Valentino, Max Factor, etc. and is said to account for 15 percent of all product sold in Arbat Prestige. Nekrasov’s aide Svetlana Shcherbakova confirmed the divorce with some suppliers yesterday but refused to give any details.
Arbat Prestige chain store unites 64 stores in Moscow and the Moscow region, St. Petersburg, Kazan and Voronezh, accounting for 14.7 percent of the chain perfume and cosmetics market.
Evergate consultant Semyon Mogilevich was detained along with Nekrasov. The investigators suspect him of being a shady owner of Arbat Prestige and the mastermind of tax evasion schemes. The court will decide on the appeal of his lawyers February 18.
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All the Article in Russian as of Feb. 12, 2008
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