The company says that the funds raised by the sale will be used to finance other Baltika Group activities, projects and investments

Brigitta Kippak, Baltika CEO, said that: "With the funds generated from the transaction, we will be able to finance the main activities, projects and investments of the Baltika Group."

"The goal for the next few years is to gradually increase sales volumes in the Baltics, restore profitability and complete the restructuring of the company in a timely manner," she continued." adding that Baltika is setting up an improved e-store with the aim of expanding outside the Baltic States, primarily to the Nordic countries and also Poland.

The new owner of the rights to the Ivo Nikkolo brand is Niul OÜ, which concluded a sales contract with AS Baltika last week, on a 10-year licensing term, with an option for extension.

Business Register data shows that Niul OÜ was registered on July 22 this year, while its owner is Janno Kuusk.

Kippak added that the transfer or rights does not change the day-to-day business activity, namely women's clothing and accessories sales ins-rote and online.

Ivo Nikkolo will roll out its revamped e-store in October and will be investing further in the interests of boosting brand recognition in Latvia and Lithuania.

The transaction cannot, the Tallinn Stock Exchange says, be seen as one with a related party, while members of Baltika's management board and supervisory board have no interest in the transaction.

Baltika also retains retains the right to register the Ivo Nikkolo trademark or a similar trademark outside the EU.

AS Baltika in April 2021 sold off its Monton trademark, while earlier that year faced a court battle with Ivo Nikkolo over alleged unpaid rents.

In 2020 the company had had to undergo reorganization procedures after financial difficulties the previous year had caused it to make lay-offs in some of its production centers. Nonetheless the company reported a profit for 2020.

Other Baltika brands include Mosaic, Baltman and Bastion.

--

Follow ERR News on Facebook and Twitter and never miss an update!