Tallinn's Stockman department store will not be affected by the decision of the company's Finnish arm to file for "corporate restructuring" on Monday morning. A statement from the managing director of Stockmann Tallinn said daily work will continue as usual.
A statement on the Stockmann Tallinn website said this decision does not concern Stockmann's subsidiaries, which are the department stores in Estonia and Latvia and Lindex. The Tallinn Stockmann department store will continue its daily work as usual.
Marge Türner, managing director of Stockmann Tallinn said: "Stockmanni Oyj Abp's decision to submit an application to initiate reorganization proceedings does not affect our day-to-day business. The Estonian subsidiary operates independently and the Tallinn department store continues its daily operations as usual. We are serving customers and our department store is open as previously announced."
Stockman files for corporate restructuring
Finnish broadcaster YLE reported on Monday that Stockman, which is almost 160 years old, had announced a corporate restructuring.
The company 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.
Stockmann's board director Lauri Ratia said in a statement said: "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 a profitable business."
Further guidance will be issued to shareholders in April after the first business quarter of the year ends, YLE wrote.
Editor: Helen Wright