A furniture manufacturer in Telšiai, Lithuania has ceased operations after two years, resulting in all employees being made redundant. The company's financial difficulties led to a bankruptcy petition being filed in court last month.
Photo: Dreamstime.
The Employment Service confirmed that 21 workers, including carpenters and assistants, have lost their jobs as a result. On 12 November, the Šiauliai District Court declared NS2 bankrupt, rejecting a proposal from its creditor, 'Medinukas', to restructure the company. NS2 owed 'Medinukas' €107,900 and faced six additional lawsuits over unpaid debts.
The court stated, 'The defendant (NS2) cannot adequately finance its activities, facing a lack of working capital, which has negatively affected its performance.' As of September, the company reported assets of €2.1 million, including €172,700 in short-term assets. However, its liabilities were €4.6 million, with a net loss of €2.5 million.
NS2 also owes €105,900 to the State Tax Inspectorate and €168,300 to 'Sodra', according to data from Rekvizitait.lt. The company's revenue dropped by 24% last year to €4.2 million, resulting in a net loss of €468,900.
Laurynas Noreikas, who owns 100% of NS2's shares, served as its director. At the start of the year, the company employed close to 90 people, as per 'Sodros' records.
This bankruptcy underscores the challenges small enterprises face in maintaining financial stability amid economic pressures. The closure not only impacts NS2's employees but also poses broader implications for Telšiai's local economy.
Efforts are ongoing to address outstanding debts and resolve claims from creditors, but the collapse of NS2 serves as a stark warning for businesses struggling to manage their finances effectively.
Source: www.madeinvilnius.lt