Listed Estonian garment seller AS Baltika signed an agreement earlier this month to sell the Monton trademarks in Europe to Shenzhen Maiteng International Apparel Co.Ltd, which operates the Monton Sports sportswear brand.
All proceeds from the sale will be used to repay a loan to the bank which holds a pledge to the trademark. Baltika Group will have the license to sell under the Monton brand for free until the end of 2023, Baltika informed the stock exchange.
The sale of the Monton trademarks is not considered a significant transaction pursuant to the Nasdaq Tallinn requirements for issuers.
The trademarks sell-off is part of the implementation of a new business model whereby, going forward, Baltika focuses only on developing and marketing the Ivo Nikkolo women's clothing brand.
In 2020, the company occured a €400,000 loss at a turnover of €19.5 million. Turnover decreased by more than 50 percent over the year.
Baltika has also started cooperation with an international agency to build up a brand new retail concept. The first store of the new concept will be tested in the second half of 2021 in Tallinn.
Editor: Kristjan Kallaste