Hong Kong Retail Chain Seeks Debt Restructuring

The Finnish-owned Hong Kong chain of discount stores applied to the Espoo District Court on Thursday for debt restructuring. The company’s 2016 books recorded 1.3 million euros in losses. The chain’s 27 department stores, most of which are located in the southern half of the country, will stay open during the proceedings. The Finnish chain of discount department stores that operate under the name Hong Kong has applied for debt restructuring in the face of major financial difficulties. A press release explains that the company is hoping that the debt restructuring will help to quickly restore the chain to good financial standing. “Group costs outweigh net sales. A few loss-making department stores also strain the company’s profitability,” the release says. The Finnish financial paper Kauppalehti was the first to report on the Hong Kong application. The paper says that according to the last accounting period that ended in February 2016, the company owed close to 37 million euros in debt. Turnover for the year ending in February 2016 was 120 million euros, a close to ten percent decrease on the previous year. Overall, the company posted losses of 1.3 million euros in the past year. Read more.