Utenos Trikotažas plans to sell its main building in Utena and maintain operations under a lease agreement

SBA Group company Utenos Trikotažas is launching the sale process for its main production and administrative building in Utena. A key condition of the planned transaction is that the buyer will lease the building back to the company so that production and day-to-day operations continue without interruption.

The sale of the real estate is part of the court-approved restructuring plan of Utenos Trikotažas. The aim is to accelerate implementation of the plan, ensure faster settlements with creditors, and return to the usual, sustainable operating rhythm. The asset for sale is a production and administration complex of nearly 25,000 sq m on a 5.2-hectare land plot. Approximately 20,000 square meters consist of production facilities, with the remainder being administrative premises.

“The goals set in the restructuring plan – reducing fixed costs, optimising headcount and relocating part of production abroad – have already been achieved. This required substantial changes to many business processes. These changes enabled the company to return to profitability in the first half of 2025. Since the business model outlined in the plan has been tested in practice and is working, the decision has been made to sell the building now – we are prepared to pay the rental price and continue operating in the same location,” says Nomeda Kaučikienė, CEO of Utenos Trikotažas.

In the second quarter of 2025 the company reached a profitability turning point, and the first half of the year was closed with a positive result. Profit before tax amounted to EUR 136 thousand. Sales in the contract manufacturing segment grew by 45.2 percent in the first half of the year and reached EUR 7.6 million.

Earlier this year the company sold non-core buildings located outside the main factory site in Utena. The transaction value amounted to EUR 435 thousand.

The orders received by Utenos Trikotažas for the second half of the year give reason to expect that sales growth will continue and profitability will increase. “We will continue to implement the planned restructuring measures in a targeted manner in order to maintain the pace of growth and ensure the long-term stability of the company,” adds Nomeda Kaučikienė.