Latvia, Legislation, Markets and Companies, Retail

UAB Palink founder and shareholder Oliver Ortiz emphasizes that the Latvian authorities must immediately lift "the unlawful ruling," otherwise the company will turn to the court, writes LETA.

Ortiz pointed out that the court's decision to declare Latvia's third largest retail company insolvent on the basis of unproven EUR 30,000 (LVL 21,000) ceded demand by a third party, as well as threats to Palink employees, would make one think that Latvia is not an EU member state, but a "banana republic".

"We have been operating in the Baltic States for 20 years. However, we have never faced such striking and pathetic unfairness. Moreover, the company's reputation is ruined. Good reputations are difficult to build, but easy to destroy," said Ortiz.

REWE Group, which owns 80% of UAB Palink shares, called on the Latvian government to immediately solve the current situation. The company's representative, Martin Bruning, explained that the European Court of Justice would be the worst case scenario, since the legal proceedings could last for months or even years, whilst Palink would already lie in ruins.

The main problem is that the Riga Kurzeme District Court's verdict cannot be appealed. Therefore, to close Palink insolvency proceedings, an official protest from Supreme Court chairman or prosecutor general is required.

"We are hoping for the Latvian government's cooperation," added Bruning.

As reported, Palink, the company that runs "Iki" and "Cento" chain stores, was ruled insolvent by the Riga Kurzeme District Court on January 5. Gungega Rozmisa was appointed Palink insolvency administrator.

The insolvency case against Palink was opened following a petition filed by private individual Sergejs Guscins, who claimed that Palink had not paid for work done by the construction company Landekss.