Estonia, EU – Baltic States, Lithuania, Markets and Companies

Silvano’s former full subsidiary Linret LT is a Lithuanian retail sales enterprise that operates 14 retail units. The completion of the transaction will take place in November.

Linret earned a loss of nearly 499 thousand euros (7.8 million kroons) in the first nine months of this year. Taking into account the decline in customer demand in Lithuania and the overall economic situation in the country, the management board of Silvano estimated that it was unlikely that Linret LT would become profitable in 2010 or would generate positive cash flow in near future.

In order to adjust Silvano’s business operations to the changing economic environment, the management board of Silvano will continue changing the focus from the company’s own retail sales operations to the franchising model that will help decrease costs and direct the relevant resources elsewhere.

In the Baltic States, Silvano plans to continue the transition to franchising model under the brand of Lauma Lingerie.