KT Modules, a modular house builder in Lithuania, has announced the termination of approximately 55 employees as part of its ongoing bankruptcy proceedings. Following the regulations, the Employment Service was notified on February 10 about the layoffs, which account for more than 10% of the workforce. This move comes as part of the company's efforts to address its financial issues stemming from considerable debts to creditors.

The bankruptcy case against KT Modules was initiated following a court decision made on January 30, which recognized the company's financial insolvency. Creditors have pointed out that KT Modules owes around 340,000 euros, and there are claims that employees have not been receiving their salaries. The situation highlights the struggles of companies in the construction sector amidst economic pressures, reflecting broader trends in the industry that many businesses face today.

KT Modules, which specializes in producing portable modular homes and containers for sale in Scandinavian and other European markets, has seen its ownership change hands, with the Vilnius-based KTM Group currently controlling the entirety of the company's shares. The lack of financial stability poses significant challenges for the company’s future operations and its ability to maintain production and employment going forward, raising concerns in the local market about job security and economic impacts.