Construction, Legislation, Lithuania, Markets and Companies

Bauhof Group AS CEO Mart Vau said that the decision to restructure was a complicated one. "Bauhof has invested LTL 19 million (EUR 5.5 million) in Lithuania, which is almost twice more than the planned LTL 10 million (EUR 2.9 million) in 2007. So, it only made the decision harder," said Vau.

UAB Bauhof LT Managing Director Patricijus Rauktys said: "Lithuanian economy does not seem to recover soon. Therefore, the heads and the owners concluded that to continue operations with five stores and the present business model is not sustainable in Lithuania. The owners are trying to avoid any additional losses."

"We continue to develop the new business model and are trying to reach agreements with all suppliers to avoid Bauhof LT bankruptcy, because this would mean great losses for all sides involved. We will also submit proposals to all employees and lessors with whom the company has long-term agreements. We hope that all these measures will allow us to prevent bankruptcy" said Rauktys.

In contrast to the situation in Lithuania, Bauhof continues to expand in Estonia – this year it will open one new store in shopping centre Mustika. "The whole amount invested in Lithuania has been written-off and the losses or the restructuring will not affect the results of our company in Estonia. This year we expect even better results as concerns both the sales and the profit," said Bauhof Group AS CEO Mart Vau.

Bauhof sells construction and garden supplies and has the largest market share in Estonia. In 2014 the company plans to open 5-7 new stores there. Bauhof Group AS sales in 2012 grew by 10% and reached EUR 74.6 million.