EMCC European Monitoring Centre on Change

Narbutas & Ko

Company/Organisation:
Narbutas & Ko

Geographic Location

Country: Lithuania
Region: Vilniaus apskritis; Lietuva
Location of affected unit(s): Vilnius, Ukmerge

Company

Sector: Manufacturing
Other manufacturing, and repair and installation of machinery and equipment
31 - Manufacture of furniture
Number Employed: 530

Employment Effects

Announcement Date: 11-05-2009
Planned Job Reductions min: 530
Type of Restructuring: Bankruptcy
Employment Effect Start: 08-05-2009
Foreseen End Date: 26-03-2009
Direct Dismissals: 530

Additional Information

One of the biggest furniture producers in Lithuania Narbutas & Ko announced its bankruptcy on 8 May 2009. All 530 employees have been dismissed. The main cause of the bankruptcy was the lack of current capital and sharply decreased number of orders. According to the management, the prognoses for the demand for the company's production were too optimistic. The company invested over 75 million LTL for the construction of new factory in Ukmerge in July 2008.