Amber Latvijas balzams, a notable producer from Latvia recognized for its Riga Balsam liqueur, has encountered severe financial difficulties, leading to the initiation of temporary legal protection proceedings due to an outstanding tax debt that has surpassed 28 million euros. This alarming debt situation caught the attention of the Latvian tax authority (VID), which began debt recovery actions against the company as early as November. Despite prior assurances from the company’s management regarding their efforts to settle the debt, circumstances have deteriorated significantly within a mere three months.

The court has now intervened by initiating preliminary protective measures aimed at providing the company with temporary relief to reorganize its finances and avert bankruptcy. Such legal proceedings are designed to offer companies in distress a breathing space to address their financial obligations and prevent complete insolvency. However, representatives from Amber Latvijas balzams have declined to give interviews on the matter, citing the financial struggles exacerbated by forced asset expropriation in Russia and other challenges that the company has faced recently.

The situation carries broader implications for the beverage industry in Latvia, highlighting the vulnerabilities businesses face in managing tax debts amidst economic pressures. The fate of Amber Latvijas balzams is not only significant for the employees and stakeholders involved but could also impact the overall image and operational stability of the industry in the region. The outcome of the court's decision will be pivotal in determining the future trajectory of this storied brand, which is among the most recognized in Latvian alcoholic beverages.