The company LLC 'Skai Baltija', managing the 'Sky' retail chain and supermarkets, has filed for insolvency in court, unable to compete with foreign-owned supermarket chains, the LETA agency was informed by the company.
The insolvency statement of 'Skai Baltija' was filed on Friday, March 13.
The 'Sky' stores on Duntes Street and Hippocrates Street in Riga continue to serve customers until further notice, while the stores on Sigulda Highway and Kārļa Ulmaņa gatve in Riga are no longer accessible to visitors.
The company's management notes that 'Skai Baltija' can no longer compete in the 'price war' with large foreign-owned retail chains. In recent years, the geopolitical situation has significantly increased operational costs. To ensure a transparent and clear settlement of obligations, the management has decided to file for insolvency proceedings.
The company notes that it has previously successfully overcome crises, including the economic crisis of 2009, and in recent years has tried to adapt as much as possible to changing market conditions, changing administrative leadership several times, developing various development plans, and optimizing operations and expenses.
The management of 'Skai Baltija' emphasizes that the market situation has changed significantly in recent years. Not only has the overall market contracted, but large international retail chains are gaining more influence in Latvian retail, which, due to significant purchasing volumes, have lower costs. This, in turn, has intensified price competition. At the same time, consumer behavior has also changed. Customers are increasingly choosing cheaper products, while quality often takes a back seat. In such conditions, 'Sky' has found it increasingly difficult to compete with large foreign-owned supermarket chains that can offer lower prices.
Additional pressure on the company's operations has also come from the geopolitical situation. After the start of the war in Ukraine, both prices and operational costs sharply increased, further raising product costs. Given these circumstances, the management of 'Skai Baltija' was forced to decide to file for insolvency, the company explained.
During the insolvency process, 'Skai Baltija' will cooperate with the insolvency administrator and responsible institutions to ensure a proper and legally compliant settlement of obligations to cooperation partners and the company's employees.
As previously reported, at the end of January this year, 'Sky' closed its store on Krasta Street in Riga.
As of March 12 this year, 'Skai Baltija' had a registered tax debt to the State Revenue Service in the amount of 1.178 million euros.
In 2024, 'Skai Baltija' operated with a turnover of 23.741 million euros, which is 17.3% less than the previous year, while the company incurred losses of 2.625 million euros. The company was registered in 2016, with a share capital of 300,000 euros. The sole owner of 'Skai Baltija' is Aivars Rubenis.
