Lehto Group’s logo on a fence surrounding a construction site in Helsinki in September 2019. Lehto Group on Thursday filed an application for corporate re-structuring with the District Court of Oulu, reports Helsingin Sanomat. The application was filed a week after the court had confirmed the bankruptcies of three subsidiaries of the construction group. (Emmi Korhonen – Lehtikuva)

Business
Tools
Typography

THE DIFFICULTIES of Lehto Group are continuing.

Helsingin Sanomat on Thursday reported that the construction group has submitted an application for corporate re-structuring with the District Court of Oulu, a week after the court had declared bankrupt three of its key subsidiaries, Lehto Asunnot, Lehto Tilat and Lehto Korjausrakentaminen.

The bankruptcies are among the largest in the Finnish construction sector in recent years.

The subsidiaries were responsible effectively for all residential and commercial construction at Lehto Group. Lehto Asunnot accounted for roughly 212 million and Lehto Tilat for 130 million euros of the roughly 345 million euros the construction group reported in revenue in 2022, according to data from Asiakastieto.

Lehto Group announced the bankruptcy filings on 6 February, admitting that the subsidiaries were no longer financially able to continue operations.

Helsingin Sanomat highlighted that Lehto Group has seen its revenue and operating profit nosedive in recent years.

In 2018, the construction group reported an operating profit of 37 million euros on revenue of over 720 million euros. In November 2023, by contrast, it revealed that it had generated 154.5 million euros in revenue and racked up almost 23.5 million euros in operating losses in the first nine months of the year.

Aleksi Teivainen – HT

Partners