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Stockmann files for corporate restructuring due to coronavirus

The nearly 160-year-old retailer said it made the filing at Helsinki District Court on Monday.

File photo of Stockmann department store in downtown Helsinki February 1, 2017.
Busier times. File photo of Stockmann department store in downtown Helsinki February 1, 2017. Image: Yle News / Mark B. Odom
Yle News

Finnish retailer Stockmann filed for corporate restructuring on Monday morning, according to a company announcement. The company cited a drastic decline in customer volumes caused by the ongoing coronavirus crisis.

The firm said growth of sales in online shopping operations of Stockmann and its fashion outlet Lindex were not enough to compensate for the reduction in shoppers to its brick and mortar stores.

Following a period of declining sales, corporate downsizing and store closures, Stockmann renewed its strategy and implemented a savings programme last year, and around two months ago the firm reported a better-than-expected profit announcement.

"However, the unprecedented situation caused by the coronavirus has led to an extreme decline in customer volumes, depleting the company’s cash in hand. In this very difficult situation, the board has decided to file for the corporate restructuring of Stockmann. The board is convinced that with the initiatives already launched, Stockmann Group has the preconditions for profitable business," Stockmann’s board director Laura Ratia said in a statement.

The company said it plans to publish its Q1 report on 30 April and that it would offer further guidance to shareholders "when the visibility in the company’s markets is clearer."

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