Growth

Boosting a bag business for audiophiles

Boosting a bag business for audiophiles
Published on: 08/11/2017

Location: Sofia, Bulgaria

Financial Intermediary: National Guarantee Fund (Bulgarian Development Bank)

SME:  Kloshar Bags

Sector: Fashion

Number of employees:  2

Financing purpose: development of online shop and purchase of materials for the bags

EIF financing: COSME LGF, EFSI

 

Kloshar’s bags incorporate authentic and useable records in their products. The bags are built out of single pieces and custom-made at the client’s wish, handcrafted by Natalyia Milenkov. 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. As fans of vinyl, Kloshar Bags develops their end products while keeping the vinyl records completely authentic and usable.

The idea originated when Deyan Milenkov decided to give his sister Natalyia a vinyl record bag as a present. Natalyia started 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 on social media. With this growth came an increasing need for investment in materials and logistics. Deyan and Natalyia decided to leave their jobs 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 the European Investment Fund (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 supplying their unique bags to clients across the world, from the United States to South Korea.

Businesses can contact selected financial institutions in their country to access EU financing through our access to finance website.