Sports socks factory Nuri closes abruptly with €12M debts

 In Companies, Insolvencies, News

The Santo Tirso company Nuri, which produced sports socks for companies like Primark and Puma, has suddenly closed down leaving €12 million in debt and 108 employees on the dole.

The company was discussing a restructuring plan with its creditors as late as July 6, but an agreement could not be reached and the company has been forced into liquidation by the courts.
The company had been producing socks since 1990 and rapidly grew prompting a move to a new 500m 2 factory in 1993. The company did so well that in 2006 a second 5,000m2 factory was opened in Santo Tirso.
At the start of 2019 and with 112 staff, the company had a €5 million export turnover with top clients like Puma and Primark, and the company pressed ahead with a €3.5 million investment with support from Compete 2020 to bolster the company’s production capacity from 5,300 pairs of socks per day to 7,800 pairs.
However, with the arrival of the pandemic the company’s finances began to suffer with turnover falling by €6 million by 2022 and accumulated losses of €2 million. Financially exhausted, the company instigated a Special Revitalisation Process as debts rose to €11.6 million.
The list of 156 creditors is headed by bank BCP (€2.5 million), followed by Portuguese SME investment agency IAPMEI (€1.24 million) and bank CGD €699,000. Social Security is owed €153 million. Other creditors include banks Montepio (€1.3 million) and BPI €576 million.