Russian computer retailer charged with embezzlement

Sergey Bobylev, main owner of the Sunrise national chain of computer stores, has been charged with embezzlement after a police investigation, initiated on complaints by creditors, Kommersant reports. The chain’s creditors are owed $80 million collectively.

Specifically, Bobylev transferred goods and real estate out of the company’s possession. He was in the process of negotiating the sale of a 75% of the stock in the company at the time. Igor Yakovlev, co-owner of Eldorado, a major Russian household electronics chain, told the newspaper that he backed out of the deal last week after Bobylev’s actions were uncovered. Yakovlev stated that Bobylev emptied the company of “all its assets.”

Bobylev had serious problems before this new charge. Since September of last year, 52 suits have been filed against various companies in the Sunrise Group. At the beginning of the month, two courts in Moscow froze assets belonging to Sunrise Nedvizhimost’ and Sunrise Real Estate, subsidiaries of the Sunrise Group, for nonpayment of rent on retail space. The sum owed was 77.4 million rubles ($2.474 million).

Bobylev and Sunrise Russia were sued by Alfa Bank at the end of last year for $30.233 million. Alfa became the owner of some of the affiliates of the Sunrise Group as a result. According to Oleg Samoilev, director of EAA Asset Management Consulting Ltd., the company that sued Sunrise for back rent - Alfa - now controls Sunrise Nedvizhimost’ and Yakovlev controls 50 percent of Sunrise Real Estate.  

The Sunrise chain was founded in Moscow in 1991. There are about 100 Sunrise computer stores. They range in size up 10,000 sq. m. Market insider estimates the company had a turnover of about $650 million in 2007.