Finnish department store Stockmann said on Monday it will sell its buildings in Tallinn, Riga and Helsinki as part of a reorganization plan.
On Monday, Stockmann's reorganization adviser Jyrki Tähtinen sent a proposal to the Helsinki Court. It shows that the department store is more than €60 million in debt.
The firm will continue operations as a tenant in the sold-off properties, as well as online.
It was announced earlier this year that the company had liquidity problems which have been exacerbated by the coronavirus crisis.
YLE News wrote: "The department store chain was established in 1862 but, like many retailers of its kind, has struggled in recent years. Then, the burgeoning effects of the coronavirus pandemic prompted the firm to file for corporate restructuring at Helsinki District Court last spring."
The firm's CEO, Jari Latvanen, said he believed the restructuring plan would help the company "to achieve the best possible outcome for all parties involved."
"Together with the other measures that have already been taken – such as adjusting cost levels, adopting a new business strategy, rationalising processes and implementing several other operative measures – the restructuring will ensure that Stockmann has a future as a pioneer in the fields of fashion, home goods and beauty products. The restructuring programme will also enable Stockmann to make the investments planned for 2021–2028, which are necessary for the development of the company," Latvanen said in the company announcement.
The firm said it would retain ownership of its chain of fashion stores Lindex, noting that revenues would go toward paying off its debts.
Editor's note: Additional information was added to the article about the company's history and plans to lease back the sold stores as well as quotes from Jari Latvanen.
Editor: Helen Wright