Latvian court declares cosmetics producer Dzintars insolvent

A district court in the Latvian capital on Tuesday declared the country's oldest and largest cosmetics company Dzintars insolvent, local media reported.

An aide to the judge at Riga City Pardaugava District Court who ruled on the financially ailing company's insolvency said that Dzintars had failed to provide proof that it had met its obligations to creditors.

According to the court, the State Revenue Service, which was the largest creditor claiming outstanding tax payments from Dzintars, rejected the company's latest rescue plan proposed as part of its legal protection procedure.

The tax authority said the cosmetics company's current tax debt stood at 2.59 million euros (2.85 million U.S. dollars) and its total liabilities to the state amounted to 6.8 million euros.

The district court's ruling cannot be further appealed.

At the beginning of November, the court ended the legal protection procedure that had been started to try and save Dzintars and launched insolvency proceedings.

Dzintars, established in 1849, is one of the oldest producers of perfumery and cosmetics in the Baltics.