Varteks Can Continue Operations as Varaždin Withdraws Enforcement

The City of Varaždin is withdrawing the enforcement against the textile company Varteks in order for the company to exit the blockade, pay salaries to employees, and continue operations, the City announced.

The City of Varaždin activated the lien for Varteks’ debt amounting to nearly 1.3 million kuna on August 11, following the resignation of the company’s CEO Tomislav Babić, and Mayor Neven Bosilj made the decision to withdraw the enforcement today after consultations at the Interparty Council. It was agreed at the meeting that Varaždin would withdraw the enforcement decision so that Varteks can continue operations.

– Based on the company’s appeal and considering the overall social situation and financial problems that Varteks has encountered, taking into account that Varaždin has collected part of the debt amounting to 1.2 million kuna, we decided to withdraw the enforcement that was placed on Fina for the amount of approximately half a million kuna – said Bosilj.

He emphasized that he is pleased that everyone at the Interparty Council showed great heart and understanding for the 850 workers of Varteks.

– I sincerely hope that the postponement of the enforcement will help the company continue its operations and get back on its feet – said Bosilj.

By collecting the amount of 1.2 million kuna Varaždin has collected the outstanding debt under the administrative contract up to this point, and the enforcement for regular debt regarding utility fees and water management fees amounting to about half a million kuna has been withdrawn.

Member of the Supervisory Board of Varteks Božica Čiček Mutavdžić, who is also the president of the Workers’ Council, thanked Varaždin and Mayor Bosilj for their prompt action, willingness to talk, and demonstrated goodwill to help the workers of Varteks.

The company emphasizes that Varteks’ production capacities are full and that orders from foreign customers amounting to 2.2 million euros have been placed by the end of the year, as well as that the autumn/winter 2022 collection is ready to enter retail units.

The situation in Varteks will also be discussed at the session of the Varaždin City Council, which will be held in September.