The Stockmann Group has filed paperwork with Helsinki District Court on Monday morning for corporate restructuring.
It comes after the company says the coronavirus has caused a “significant impact on the company’s customer volumes and cash flow.”
In a statement, Stockmann says it discussed the difficulties with its main bankers and creditors.
The company is in the middle of a multi-million euro cost savings drive, and although online sales have improved in recent weeks as customers switch from going to the stores, to e-commerce, the company says “the online sales growth cannot compensate for the drastic decline in customer volumes in the current exceptional situation.”
“We have been working tirelessly and passionately with all our Stockmann and Lindex employees to improve our business performance and to serve our customers in the best possible way” says CEO Jari Latvanen.
“Unfortunately, the coronavirus epidemic has forced us to look for new means of driving Stockmann Group into the future. Our primary goal at the moment is to secure the preconditions of our business and our jobs” he explains.
The Stockmann Group will publish its quarterly results at the end of April which should give a more clear picture of the company’s financial health.
The company is one of Finland’ best known brand names, with stores in six cities. The main Helsinki Stockmann is the largest department store in the Nordic region and attracts millions of visitors every year.
You might also be interested in: