Peiraiki-Patraiki
Encyclopedia
Peiraiki-Patraiki was one of Greece
's largest industrial groups in the 20th century. The firm was Greece's largest textile producer, and its annual production was said to be able to cover the Hellenic coastline twice over.
), raising capital in order to found a cotton processing plant. Over the next few years, the company expanded by purchasing machinery from abroad.
, Ioannis Drosopoulos. The bank had given out large loans to Peiraiki, a company whose products closely related those of Patraiki. Peiraiki was by this time nearly bankrupt, trading at about 60 drachmas in the Athens Stock Exchange
, whereas to acquire the loans it had used shares valued at 220 drachmas as collateral. Drosopoulos was thus eager to save the firm so that the bank could collect the debt in the future. For this reason, he suggested to Catsambas that a joint venture be formed between the two firms, and that he (Catsambas) should take over the management of Peiraiki. However Katsambas noted that in this case, a conflict of interest would arise, as he was the principal shareholder of Patraiki along with his partner, Stratos. He counter-proposed that the two firms be merged, with him as Managing Director, so that the conflict would be avoided. Drosopoulos initially rejected this proposal, only to accept it two months later. This time, Catsambas also asked for a loan of 5,000,000 drachmas, which Drosopoulos accepted. Thus, Peiraiki-Patraiki was formed.
was working as an external designer for the company.
, and began the construction of the new plant.
Over the next decades, Piraiki Patraiki expanded by acquiring other plants and through joint ventures.
. It was at the time Greece's second largest employer, behind the Greek Public Sector, employing about 10,000 persons. However, in the early 1980s the company was characterised as "problematic" and was nationalised. Soon after, it went bankrupt and closed down its factories.
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
's largest industrial groups in the 20th century. The firm was Greece's largest textile producer, and its annual production was said to be able to cover the Hellenic coastline twice over.
Early years
In 1919, Christophoros Catsambas and Stamoulis Stratos founded the Patras Trade-Industrial Company, producing socks. In 1924, the firm purchased its first oil-operated machine, replacing the steam-powered machines it used to use until then. During the same year, the company went public (being the first public company in PatrasPatras
Patras , ) is Greece's third largest urban area and the regional capital of West Greece, located in northern Peloponnese, 215 kilometers west of Athens...
), raising capital in order to found a cotton processing plant. Over the next few years, the company expanded by purchasing machinery from abroad.
Peiraiki-Patraiki
In 1931, Christophoros Catsambas was called to a meeting with the Director of the National Bank of GreeceNational Bank of Greece
The National Bank of Greece is the oldest and largest commercial banking group in Greece. The group has a particularly strong presence in Southeastern Europe and the Eastern Mediterranean...
, Ioannis Drosopoulos. The bank had given out large loans to Peiraiki, a company whose products closely related those of Patraiki. Peiraiki was by this time nearly bankrupt, trading at about 60 drachmas in the Athens Stock Exchange
Athens Stock Exchange
The Athens Stock Exchange or ASE or ATHEX is a stock exchange located in Athens, Greece.-History:The Athens Stock Exchange started trading in 1876. The Athens Stock Exchange is a subsidiary of Hellenic Exchanges S.A., whose shares are listed in ATHEX...
, whereas to acquire the loans it had used shares valued at 220 drachmas as collateral. Drosopoulos was thus eager to save the firm so that the bank could collect the debt in the future. For this reason, he suggested to Catsambas that a joint venture be formed between the two firms, and that he (Catsambas) should take over the management of Peiraiki. However Katsambas noted that in this case, a conflict of interest would arise, as he was the principal shareholder of Patraiki along with his partner, Stratos. He counter-proposed that the two firms be merged, with him as Managing Director, so that the conflict would be avoided. Drosopoulos initially rejected this proposal, only to accept it two months later. This time, Catsambas also asked for a loan of 5,000,000 drachmas, which Drosopoulos accepted. Thus, Peiraiki-Patraiki was formed.
Peiraiki-Patraiki during and after World War II
During the war, Peiraiki-Patraiki provided the Greek Army with goods such as blankets and fabrics for uniforms. During 1941, the company donated its entire profits to the government, and used its raw materials (cotton) to support its workers. After the war ended, raw materials were scarce, but the firm tried to regroup and install new plants, with a view to exports. In 1950, the firm begun the construction of the Megalo Pefko plant, which was the first factory to be built in Greece after the war. T. H. Robsjohn-GibbingsT. H. Robsjohn-Gibbings
Terence Harold Robsjohn-Gibbings was a British-born architect and furniture designer.Robsjohn-Gibbings studied architecture at London University. He afterwards worked briefly as a naval architect, designing ocean liner interiors, and then as art director for a motion picture studio...
was working as an external designer for the company.
Modernisation
By 1953, the Greek market was flooded with foreign imports, while the firm's plants were old and inefficient (with the exception of the Megalo Pefko factory). Catsambas and Stratos decided to build a state of the art factory in Patras. They managed to secure financing from the Export-Import Bank of the United StatesExport-Import Bank of the United States
The Export-Import Bank of the United States is the official export credit agency of the United States federal government. It was established in 1934 by an executive order, and made an independent agency in the Executive branch by Congress in 1945, for the purposes of financing and insuring...
, and began the construction of the new plant.
Over the next decades, Piraiki Patraiki expanded by acquiring other plants and through joint ventures.
Late years
By the 1980s, the company owned and operated nine factories in Greece and SudanSudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
. It was at the time Greece's second largest employer, behind the Greek Public Sector, employing about 10,000 persons. However, in the early 1980s the company was characterised as "problematic" and was nationalised. Soon after, it went bankrupt and closed down its factories.