Estonian fashion retailer Baltika Group has ceased operations in Estonia, Latvia, and Lithuania, including its online stores, and has filed for bankruptcy.

All of the group’s employees will be laid off in the coming weeks as part of the bankruptcy proceedings.

In total, 120 employees will lose their jobs – 70 in Estonia, 21 in Latvia, and 29 in Lithuania, the company said.

According to Baltika, the decision stems from a prolonged and complex financial situation within the company as well as unfavorable broader economic conditions. Despite efforts to stabilize operations in the Baltic states, the company said it had become impossible to continue with its retail-focused strategy. Since Baltika already underwent reorganization proceedings a few years ago, another restructuring was not an option.

At the same time, Baltika noted that the European operations of its parent company, ELG Group, will continue to explore wholesale and e-commerce opportunities for the Ivo Nikkolo brand across Europe. Baltika’s management, who played a key role in shaping the new strategy, will support these efforts.

“We believed in the strength and potential of the Ivo Nikkolo brand, and we still believe it holds timeless value. Unfortunately, market conditions in the Baltic states make it impossible to pursue our retail strategy. While this chapter is closing, we are leaving the door open for a possible rebirth of Ivo Nikkolo in the future, focusing on wholesale and e-commerce across the wider European market,” said Indrek Rahumaa, a representative of ELG Group.

Source: BNS

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