AS Baltika submitted an application for the commencement of reorganization proceedings to Harju County Court on March 25, 2020 and on March 26, 2020 the court decided to initiate reorganization proceedings.
Baltika is in the opinion that in the current situation reorganization of the company is the best way to protect the rights and interests of the shareholders, the employees, the creditors and the partners of Baltika.
The company believes that as a result of the reorganization proceedings and the measures taken in these proceedings, Baltika will be able to overcome its economic difficulties and restore its liquidity, improve profitability and ensure its sustainable management. This is also supported by the restructuring and efforts to improve business model which have already been made by Baltika Group, such as cessation of production operations in Estonia and thereby reducing production costs, and various other measures to reduce fixed costs.
As Baltika is the largest fashion company in Estonia with a long history, employing, together with its subsidiaries, more than 500 people.
The reorganization does not affect the day-to-day operations of the company, so the company will continue to operate in Baltics as usual, naturally taking into account COVID-19 measures.
Grant Thornton Baltic’s team consists of partner Artur Suits, head of financial advisory Mikk Mägi and financial and business advisory manager Ants Ansper.
The official press release of the company is available here.
Photo source: www.baltikagroup.com