Swedish court opens bankruptcy proceedings against Rahumaa’s lingerie group

A Swedish court this week opened bankruptcy proceedings against European Lingerie Group (ELG), the parent company of entrepreneur Indrek Rahumaa’s lingerie business, ERR reports.

In September, production buildings belonging to ELG subsidiary Lauma Fabrics, a textile manufacturer in Latvia, were put up for auction with a starting price of nearly 9 million euros. The company’s fluctuating tax debt stood at 123,000 euros this month, according to Latvia’s business register.

Rietumu, a Latvian bank and creditor of Lauma Fabrics, plans to help keep the company’s production running, Latvia’s Leta news agency reported a week ago.

Rahumaa had also sought to list ELG on the London Stock Exchange through Rockpool, but the process stalled last year. Rockpool said ELG lacked working capital and owed money to suppliers. Rahumaa did not respond to Äripäev’s written request for comment.

The company, formerly known as AS Lauma International, changed its name to AS European Lingerie Group in 2017. It had once been one of Europe’s leading textile and lingerie groups.