Lithuanian company "Žali žali" files for bankruptcy after VMVT halt

The Lithuanian company "Žali žali" has filed for bankruptcy, citing a decision by the National Food, Veterinary and Fito-sanitary Service (VMVT) to halt its operations as the cause of its financial collapse.

The company's director, Vincas Benevičius, initiated the bankruptcy proceedings, stating that the VMVT's decision in late 2025 disrupted operations, preventing "Žali žali" from generating income, selling inventory, and settling debts. This has rendered the company insolvent.

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The company was forced to cease operations and suffer extremely negative financial results, it can no longer generate revenue, realize its existing short-term assets and thus settle with its creditors, therefore it is insolvent.

According to reports, the VMVT ordered "Žali žali" to cease operations immediately due to alleged serious violations found during an inspection. However, Benevičius claims the company received the suspension news before being presented with the official list of violations, which is contrary to standard procedure. The VMVT reportedly cited technical issues for the delay but maintained that the director was aware of the significant breaches, which could have contributed to microbial contamination in food products.

"Žali žali" applied to the VMVT in early December to resume operations after implementing some corrective measures. However, the request was denied a few days later, as not all directives had been fulfilled. The company had been operating for just over 10 years when the bankruptcy case was opened on June 6.

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Such news about the suspension, the business received before the inspection results and the list of violations, contrary to what happens in the usual procedure.