AB "Šatrija" to Cease Operations as of July 21

Core Points - AB Šatrija, a garment manufacturing company, will cease operations as of July 21 due to financial unsustainability and increased competition in the textile industry [1][3] - The decision was made by the Board of Šatrija on June 20, emphasizing the need to prioritize employee compensation during this transition [2][3] - The company has faced ongoing financial losses since 2023, primarily due to rising labor costs in Lithuania and the relocation of clients to lower-cost countries [3] Company Operations - Šatrija will fulfill all current client obligations by July 21 and will not accept new orders [4] - The company plans to contact creditors to seek assistance and initiate insolvency proceedings [4] - The restructuring plan of Utenos Trikotažas included the sale of AB Šatrija shares, and the initiation of insolvency proceedings will not materially affect this restructuring process [5] Market Context - The textile industry has seen intensified competition, leading to clients relocating manufacturing services to Asia or Africa [3] - Rising labor costs and other expenses in Lithuania have made it financially unsustainable for Šatrija to operate, even at full production capacity [3]