30 percent more Lithuanian companies went bankrupt this February

DELFI / Mindaugas Ažušilis

In February, a total of 31 retail trade companies and 25 companies engaged in manufacturing industry were given the bankruptcy status. Among those which went bankrupt, 24 companies were engaged in service rendering, others – in the construction and catering industry. Compared to January, the number of new bankruptcies decreased by 13 percent.

The largest company which went bankrupt in February was RB2 UAB, engaged in wholesale trade of petroleum products. It went bankrupt although the revenue of the company in three years increased 19 times and in 2014 stood at EUR 57 million.

“A speedy growth of revenue is often associated with the company’s success. However, such hike in sales can sometimes cause serious issues. A classical challenge is the problem of working capital. Dynamic growth of sales encourages shareholders to look for additional financial reserves, which is not always an easy task,” said Rasa Maskeliuniene, chief credit risk analyst from the credit bureau Creditinfo.

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