Baltika clothing chain declares bankruptcy
Clothing manufacturer Baltika has filed for bankruptcy and will lay off 120 employees, 70 of them in Estonia.
The company, nearly 100 years old, had been struggling for several years, with only one brand, Ivo Nikkolo, being retained five years ago, after the others: Monton, Baltman, Mosaic, and Bastion, were discontinued.
Those being laid off in Estonia are office and store employees, company board member Margus Olesk told "Aktuaalne kaamera," though retail outlets will be closed down gradually.
"The stores will remain open for now. We are currently waiting for the bankruptcy trustee to be appointed, and, together with the trustee and shopping malls, we will draw up an action plan — also for closing retail operations. This will happen gradually," Olesk said.
Baltika's parent company ELG owns the Ivo Nikkolo brand, he added, "which means we don't actually plan to close the door completely. We are leaving open the possibility that the Ivo Nikkolo brand could be reborn in the future."
ELG bought Baltika from Finnish fund KJK in May.
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Editor: Andrew Whyte, Johanna Alvin
Source: 'Aktuaalne kaamera'
