Struggling Finnish retailer Stockmann said on Monday it had sold its main department store and head office building in the heart of Helsinki to Finnish pension provider Keva for 400 million euros ($442 million) to pay off debts, Nasdaq.com reported. The 159-year-old retailer initiated a restructuring programme last year to avoid bankruptcy, after struggling for years with debt accumulated from earlier expansions and a consumer shift to online shopping.
Finland’s ruling coalition came to an agreement on spending plans, averting a collapse of the Nordic nation’s Social Democrat-led government by a thin margin, Bloomberg reported. The five-party cabinet patched up its differences, forging a common vision of how Finland’s recovery from the pandemic should take place, Prime Minister Sanna Marin said. The broad outlines of the deal are now agreed, and the government will continue hammering out the details, she said.
Struggling Finnish retailer Stockmann plans to sell and lease back its flagship department store properties located in Helsinki, Tallinn and Riga in order to save itself from bankruptcy, it said on Monday, Reuters reported. In April, Stockmann filed for corporate restructuring, a form of administration in which a court appointee is charged with restructuring the company to avoid bankruptcy.
Finland’s rapid recovery from the economic crisis caused by the coronavirus looks unlikely, but the worst-case scenarios have so far been avoided, Bank of Finland governor Olli Rehn said on Tuesday, Reuters reported. The bank believes Finland’s gross domestic product will contract around 7% this year and grow around 3% in 2021 and 2022, but said GDP contraction could be as little as 5% or as much as 11% in 2020 in alternative scenarios. “Finland has not experienced a sizeable wave of bankruptcies.
Finland’s Stockmann suffered a 49.1% fall in March sales hurt by the impact of the coronavirus, said the department store operator, which has filed for corporate restructuring, Reuters reported. Its adjusted operating loss widened to 30.5 million euros from 21.4 million a year earlier, it said. Shares in the company were down 4.2% by 0900 GMT. Known for its upmarket department stores, Stockmann has struggled for years in the face of a consumer shift to online shopping, prompting cost cuts and divestments. On April 6, Stockmann announced it would file for corporate restructuring.
Finnish department store owner Stockmann has decided to file for a corporate restructuring after the drop in customer volumes caused by the coronavirus outbreak, it said on Monday, sending shares in the company down 32%, Reuters reported. Stockmann said its main creditors had given a positive initial response to the move, which is a form of administration in which a court appointee is charged with restructuring the company to avoid bankruptcy.