Intrum Justitia, a European accounts receivable management company and debt buyer, is shutting down collection operations in Latvia and Lithuania, citing difficulties capitalizing on the "economy of scales that comes with being a market leader."
“We have chosen to focus our resources on countries where the prerequisites to grow and create value for clients and shareholders is better," says Rickard Westlund, Regional Managing Director Northern Europe. "In Estonia we have a stable client base, good profitability and a close cooperation with our Finnish subsidiary, which is why we chose to integrate the Estonian unit into our Finnish operations and under Finnish management."
The Latvian and Lithuanian operations have an estimated 30 employees and the two operations have revenues of approximately $580,000. In 2011 the operating loss for these operations is expected to amount to approximately $725,000.
Intrum Justitia was founded in 1923, and employs an estimated 3,100 employees in 20 markets.
