ZAGREB, 23 August, 2022 - The City of Varaždin has decided to withdraw its enforcement order against the Varteks local clothing manufacturer in order for the company's accounts to be unblocked so it can pay its workers their wages, the city authorities reported on Tuesday.
On 11 August, the authorities of this northern Croatian city activated a debenture for Varteks's debt of HRK 1.3 million after the management board chairman Tomislav Babić resigned.
In the meantime, an inter-party council held a meeting, and following his consultations with the council, Mayor Neven Bosilj (SDP) decided to withdraw the decision for the enforced collection of Varteks's debt.
According to Bosilj's explanation, some of the receivables have been paid back to the city, and the authorities have also taken into consideration the whole social situation and decided to give up on the enforced collection of claims and enable the company to continue doing business.
The mayor said that he was glad to see that the inter-party council had shown understanding for 850 workers on Varteks's payroll.
The president of the Workers' Council and a member of the Varteks Supervisory Council, Božica Čiček Mutavdžić, recently informed the public about the difficult situation in the factory after the Tax Administration and the City of Varaždin blocked its account to collect claims, today thanked the mayor for the latest prompt decision.
According to her, Varteks has been recording an increase in retail sales compared with 2019, the year before the coronavirus crisis, which also affected its business. She noted that production capacities are filled until the end of the year and that there is interest from international brands for cooperation.
