Announcing that it can no longer compete with foreign-capital supermarket chains, SIA Skai Baltija, which operates the SKY supermarket network, filed for insolvency on Friday, 13 March, the company reports.
The management of SIA Skai Baltija states that the company can no longer compete in the price war with the large foreign-capital retail chains. In recent years, the geopolitical situation has also significantly increased operating costs. To ensure transparent and clear settlement of liabilities, the company’s management has decided to file for insolvency proceedings.
The SKY retail chain, managed by a local-capital company, was established more than 25 years ago. During its operation, the company has paid more than 63 million euros into the state budget of Latvia, and at certain periods the total number of employees has reached 580 people.
The company notes that it has successfully overcome crises on several occasions, including the economic crisis in 2009, and in recent years has also tried to adapt as much as possible to changing market conditions by repeatedly changing the administrative management, developing various development plans, as well as optimizing operations and their costs. Unsuccessfully.
The management of Skai Baltija notes that in recent years the market situation has changed significantly. Not only has the total market volume decreased, but large international retail chains are gaining increasing influence in Latvian retail, and due to their significant purchasing volumes they have lower costs. This, in turn, has intensified price competition. At the same time, consumer behavior has also changed. Customers are choosing cheaper products more and more often.
“In these conditions, it became increasingly difficult for SKY to compete with the large foreign-capital supermarket chains that are able to offer lower prices. Additional pressure on the company’s operations was also created by the geopolitical situation. After the start of the war in Ukraine, both prices and operating costs rose sharply, which further increased product prices. Taking these circumstances into account, the management of Skai Baltija was forced to decide to file for insolvency,” the company’s statement says.
SKY stores at 19A Duntes Street and 28 Hipokrāta Street will continue to serve customers until further notice.
The operator of SKY stores, SIA Skai Baltija, had a turnover of 23.741 million euros in 2024, which is 17.3% less than a year earlier, while the company suffered losses amounting to 2.625 million euros, and as of 12 March this year the company’s tax debt had reached 1.17 million euros. The company was registered in 2016, and its share capital is 300,000 euros. The sole owner of Skai Baltija is Aivars Rubenis.
Originally published at https://inc-baltics.com/bankrote-sky-veikalu-parvalditajs/
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