Amber Latvijas balzams shifts part of production to Lithuania to cut costs
Facing financial difficulties, Latvian drinks maker Amber Latvijas balzams was due today to finalize a legal protection plan with creditors, while already moving part of its output, including 'Riga Champagne,' to Lithuania to reduce costs.
Latvian beverage producer Amber Latvijas balzams, which has run into financial trouble, faced a deadline today to draw up and agree with its creditors on a legal protection plan, Latvian Radio reports.
The plan is meant to safeguard creditors' interests while giving the company a chance to keep operating as it works out an arrangement to settle its debts.
Production moving to Lithuania
Alongside the creditor talks, the company is already taking steps to cut expenses. One such step is relocating part of its production to Lithuania — the well-known drink 'Riga Champagne' is now being made there.
Through these moves, the company is trying to optimize its production and operating costs while it addresses its longer-term financial stability and its relationship with creditors.
