VILNIUS — The Gedimino 9 luxury shopping mall has had its ownership transferred into the hands of its creditor Swedbank on Tuesday after it could not pay its loans.

The lingering economic crisis has collapsed domestic demand and many of Vilnius shops inside malls and on high street have closed down. Luxury items in particular have been pushed the bottom of the list as consumers struggle to make ends meet.

The mall, which is managed by the company Aeolus, has had involuntary bankruptcy procedures started against them after they could not service their loan.

Now the mall, which was bought for 103.6 million litai (€30 million) in 2005 is in the hands of a bankruptcy trustee, who will oversee its sale to new owners.

Gedimino 9’s management insist that they have been paying all their debts except to the bank where they took their loan. Swedbank reported that the bank has had trouble with the client for over a year.

Business in the mall is not scheduled to be interrupted despite the ownership transfer.