How EFSI benefits SMEs in Europe - Bulgarian Development Bank case study: Kloshar Bags (Bulgaria), Textile

An interest in music and art is the common element behind the diverse clientele of Kloshar Bags, a bespoke street fashion brand based in Sofia, Bulgaria. The origins of the company can be traced back to when Deyan Milenkov decided to give his sister Natalyia a vinyl record bag as a present. After some time, Natalyia was making her own bags for herself and her friends, with Deyan eventually developing a Facebook page for Kloshar Bags.

The brand quickly gained its first fans in the world of social media, but with this growth came also the increasing need for investment in materials and logistics. Deyan and Natalyia decided to leave their previous jobs in order to dedicate all their time and resources to the company, and they started to look for support and partners that could enable this growth.

They found this support in the form of an EU-guaranteed loan through the JOBS Microfinance Institution, backed by a guarantee of the National Guarantee Fund and a counter-guarantee by EIF. As Deyan explains, “we were expecting more sluggish procedures, but it turned out that we were wrong. Naturally, there was a filling-in of documents, but the most important thing was the attitude they had with us. The bank employees were with us 24/7.”

The loan allowed Kloshar Bags to launch their own online shop and expand the team, exploring new markets as their unique bags are supplied to clients across the world, from the United States to South Korea.

Kloshar’s bags incorporate authentic and useable records in their products, with the bags built out of single pieces and custom-made at the client’s wish, personally handcrafted by Natalyia. Together with the signature vinyl record, clients can choose from a multitude of design elements: Spider webs, wings and crocodile skin are mixed with space motifs and holographic elements, neon colors and various painted fabrics.

Company: Kloshar Bags (Bulgaria)

Type of business: Textile

EIF financing: COSME LGF, EFSI

Financial intermediary: Bulgarian Development Bank Group; National Guarantee Fund 

For further information about EIF intermediaries in Bulgaria, please refer to: http://www.eif.org/what_we_do/where/bg