Estonian producer of wooden boards Repo Vabrikud has filed for bankruptcy after close to half-a-century in business.
The company's assets have been placed under bankruptcy trusteeship and are to be auctioned, with a starting price of €7.5 million.
Repo Vabrikud filed for bankruptcy at the end of September, citing a lack of competitiveness in its core markets, Finland and Sweden, resulting from high energy prices and also high timber and wood prices.
The company had been operating at a loss for several years – in 2019, it posted losses of €1.1 million from a €22.1 million turnover and, while 2020's losses were negligible (€8,000 from a turnover of €21.1 million), last year, these had risen again to €630,000 despite a higher turnover, of €27.5 million.
Repo Vabrikud employed nearly 150 staff in its own right, and tangentially several hundred more via partner companies. It had been operating continuously since 1975, when dated from its predecessor concern, Püssi Puitlaastplatte Kombinat.
The breakdown of the €7.5 million assets sale is: €4.5 million in real estate and €2.5 million in equipment, stock etc. (VAT makes up the difference).
The assets auction opens January 10, 2023, and ends January 18.
Editor: Andrew Whyte,Barbara Oja