Ida-Viru County supplier to Head sportswear company to close, 43 jobs lost
One of Ida-Viru County's longest-running family firms, VR-Koda, is to shut down next month after 33 years in business, Põhjarannik wrote.
The closure has meant the firm, based in Kurtna, Alutaguse rural municipality, has had to issue redundancy notices to 43 staff.
Owned by Tarmo and Piret Pääro, VR-Koda had for years been producing inners for alpine ski boots, with the main customer being the Head brand of sporting equipment, via Italian firm MARES — VR-Koda were sent the raw materials to make the inners, selling the finished product back to the customer.
In 2024, the company manufactured nearly 90,000 units and had a turnover. However, Tarmo Pääro stated a rise in input costs, which could not be matched by price hikes, as a major factor in the decision to close.
"You adjust things here and there, but even in that respect you eventually hit a ceiling, even though already now quite a lot of the sewing is done by computers," Pääro said. He added that the product was so specific that it would be challenging to replicate for another buyer or to re-purpose to another product, at a time when the company can also be undercut by producers in China and in Southern Europe.
The company will not be leaving any debts, Pääro added.
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Editor: Andrew Whyte
Source: Põhjarannik
