Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Baltika Group, an Estonian manufacture company which operates five clothing brands in the Baltics, announced it will shut down its two production units in Estonia during 2019. The production units in Tallinn and in Kohtla-Järve are organised under the company Baltika Tailor, which currently employs 340 employees. All of the employees will be made redundant.
Baltika plans to change its strategy due to ending the last financial year in a loss. The new strategy includes merging five brands into two and moving production to new, more cheaper locations. Estonian production units currently account for 33% of the production.
230 employees work in Tallinn, the capital of Estonia. 110 work in Kohtla-Järve, in the region of Ida-Virumaa, where the unemployment rate is the highest in Estonia. The company will receive response service to collective dismissals from the Estonian Unemployment Insurance Fund (EUIF), which includes counselling services for the company as well as employees and other help necessary for the employees to find a new job as fast as possible. EUIF announced that at least in the Kohtla-Järve region, there are a lot of suitable jobs currently available.
Eurofound (2019), Baltika Tailor, Closure in Estonia, factsheet number 97364, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/97364.