Varteks Clothing Manufacturer Passing through Troubled Waters

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The president of the Workers’ Council, Božica Čiček Mutavdžić confirmed this to Hina on Friday, noting that the production department wasn’t working.

She said they had asked that the workers’ holiday be extended until Monday, 22 August, when they should return to work. Workers from other departments are working.

Čiček Mutavdžić said that part of the receivables to the Tax Administration and the City of Varaždin had been settled, which is why it is expected that the account will be unblocked.

A letter was sent to the City of Varaždin proposing that the account be unblocked, while the company will pay back HRK 20,000 (€2,666) every day in order to reduce the debt. Čiček Mutavdžić underscored that it is necessary to have the account unblocked in order to pay the workers their wages.

However, the problems do not end here, since intensive negotiations are underway between creditors on the distribution of funds that may be received if the land is sold to Kaufland.

A meeting was held with all the lien creditors yesterday, and … no one is in favour of the company going into bankruptcy, but no agreement has been reached either, said the president of the Workers’ Council.

She is convinced there is a way out for Varteks, since there is also interest in the purchase of other properties of the company. The company, Čiček explained, still has inactive assets whose sale could significantly improve its financial situation.

According to her, Varteks has been recording an increase in retail sales compared with 2019, the year before the coronavirus crisis, which also affected the business. She notes that production capacities are filled until the end of the year and that there is interest from international brands in cooperation. However, Čiček warns, that unless the problem of unblocking the account and paying the workers is resolved, all of that will be in vain.

Varteks currently employs 850 persons.


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