Tax authority renews bankruptcy bid against Kitee textile factory

Finland’s Tax Administration has again petitioned to have Kitee Textile Factory declared bankrupt over unpaid tax debts of just over 31,000 euros, Yle reports.

The petition was registered at the North Karelia District Court on October 7. The clothing and bag manufacturer has faced financial difficulties for years and was also subject to a bankruptcy petition in 2023. That case was withdrawn after the company responded to its creditors. A corporate restructuring was also underway at the time.

The company was founded in 2013 after Marimekko closed its factories in Kitee and Sulkava. Kitee Textile Factory has continued to work as a subcontractor for Marimekko and has also made clothes for other manufacturers. Its products have included ice-fishing backpacks and merino wool shirts.

Several of the factory’s customers, including Varkaus-based Dream Circus, have ceased operations. Kitee Textile Factory has employed about 10 people.