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Latvia: Grobina fur farm files for insolvency
BC, Riga, 29.10.2019.
Print version
Print version Latvia's Grobina fur farm has filed an insolvency application with Kurzeme District Court, LETA was told at the court. The court plans to hear the insolvency claim in a written procedure this Thursday, October 31.
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In an announcement published in the official gazette Latvijas Vestnesis the company's management says that because of a crisis on the fur market, the sales targets set in November 2017 in the company's legal protection process plan were not met, which is why Grobina amended the plan for the legal protection process in September 2019. However, since the new plan was not approved it could not be implemented.
Responding to this situation, the Grobina management board has filed the insolvency application with the court, asking at the same time to terminate the legal protection process, as Grobina is currently unable to meet its obligations as stipulated in the plan for the legal protection process.
As reported, in June 2016 Kurzeme District Court in Liepaja approved the plan for the fur farm's legal protection process, giving two years for its implementation. Later, the schedule was extended until June 30, 2020.
It has also been reported that Grobina closed the first half of 2019 with EUR 2.544 miln in turnover, which grew by 71% against the same period a year ago, and a loss of EUR 843,085, which expanded by 63.8% y-o-y.
Grobina, a company raising mink for fur, is quoted on the Secondary List of the Nasdaq Riga stock exchange.
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