STOCKMANN on Monday announced it will file for corporate re-structuring due to an “abrupt and significant” decline in customer numbers caused by the coronavirus pandemic.
The Finnish retail icon stated in a press release that the pandemic has brought about a massive change in its operating environment that cannot be offset by the recent robust growth in its department store sales and online sales of Lindex.
“The coronavirus and the restrictions issued in response to it have had and will continue to have a material impact on the company’s customer numbers and cash flow,” the retailer said.
“The unprecedented situation caused by the coronavirus epidemic has led to a situation where the decline in customer numbers has been very sharp and the company’s cash reserves have been depleted,” added Lauri Ratia, the board chairperson at Stockmann.
Corporate re-structuring is a procedure requiring the approval of a court of law designed to breathe new life into the operations of an over-indebted business. It is often an alternative to initiating bankruptcy proceedings.
Stockmann told this morning that its board of directors decided to opt for debt re-structuring after determining that the business operations can be continued and revived. The re-structuring process will not affect the retailer’s department stores in the Baltics or Lindex.
Aleksi Teivainen – HT