A popular brand has gone bankrupt: stores are closing across the Baltics, employees are being laid off 0 15

With the decision to declare bankruptcy, one of the oldest manufacturers and retailers of fashion clothing in the Baltic states ceases operations. At the time of closure, there were seven Ivo Nikkolo stores remaining in Estonia, but all of them have already ceased operations.

CEO Brigitte Albertina acknowledged that even a strong and recognizable brand cannot survive in a small and competitive market. According to CFO Margus Olesk, the main reason was the high production costs in Estonia.

The parent company Baltika Grupp has also filed for bankruptcy, ceasing operations not only in Estonia but also in Latvia and Lithuania, as well as closing all online stores.

In the coming weeks, all 120 employees of the group will be laid off as part of the bankruptcy procedure, including 70 in Estonia, 21 in Latvia, and 29 in Lithuania.

The company explained that the decision was prompted by prolonged economic difficulties and unfavorable market conditions. Previously, Baltika had undergone financial restructuring; however, a new restructuring proved impossible.

Despite the bankruptcy, the parent company ELG Grupp is considering the possibility of preserving and relaunching the Ivo Nikkolo brand through wholesale and online sales in the European market.

Group representative Indrek Rahumaa stated: “We believed and continue to believe in the strength of the Ivo Nikkolo brand. However, the economic conditions in the Baltics no longer allow us to implement the previous retail strategy. Although this chapter is coming to an end, we do not rule out the return of the brand in the future.”

Founded in the late 1980s, Baltman was a symbol of Estonian fashion and for a long time was considered one of the few successful local manufacturers that managed to expand its operations beyond the domestic market.