The head of the company, Vincas Benevičius, initiated proceedings for the bankruptcy of “Žali žali” at the Kaunas District Court. The filing occurred on June 6th, marking the tenth anniversary and one month of the company’s operation. According to statements submitted to the court, the company has accumulated significant debt due to operational difficulties.
Benevičius cited a disruption in the company’s activities that began in 2025, stemming from a directive issued by the Ministry of Agriculture and Rural Development (VMVT). This external decision reportedly forced the business to cease normal operations, leading to severe negative financial results. The company has subsequently been unable to generate sufficient income or liquidate its short-term assets, leaving it in a state of insolvency relative to its outstanding debts with creditors.
The submitted documentation indicates that the confluence of factors—including the cessation of sales momentum, the loss of expected Christmas revenue, and the inability to manage inventory—has created an insurmountable financial burden. The filing formally addresses the company’s inability to settle its financial obligations. The court proceedings are now underway to determine the viability of the company given its current financial standing.
Topics: #company #bankruptcy #court
