Seppälä has announced that it has filed for debt re-structuring in an attempt to consolidate its financial standing and secure the future of its nationally recognised brand for generations to come.
The fashion retailer introduced a series of belt-tightening measures last year but has yet to claw its way back onto the growth path.
Seppälä revealed yesterday that as a result of the consultative negotiations it launched at the beginning of the year it will shut down 14 shops following the expiry of their tenancy agreements, leaving it with a network of 78 shops in Finland. Seppälä also operates shops in Estonia.
“We have to reduce the number of loss-making shops either by adjusting tenancy agreements or by using other measures,” Eveliina Melentjeff, the managing director of Seppälä, said to Helsingin Sanomat. She refrained from disclosing the number of loss-making shops.
The loss-making fashion retailer reported net sales of some 40 million euros and provided employment to approximately 500 people in 2016.
Aleksi Teivainen – HT
Photo: Vesa Moilanen – Lehtikuva
Source: Uusi Suomi