Stockmann, the Finnish retail powerhouse, has put rumors to rest by announcing that it will not sell off its fashion chain, Lindex, as part of its ambitious restructuring plan. Instead, the company believes in the “great potential” of Lindex and plans to keep it as part of the Stockmann Group.

The restructuring plan includes a range of measures designed to revitalize Stockmann’s business operations and ensure its continued profitability. This includes keeping its department stores open, reducing debt by selling and leasing back department store properties in Helsinki, Tallinn, and Riga, and retaining ownership of Lindex. The entire restructuring program is expected to take eight years to complete.

In response to changes in the retail landscape and consumer behavior, Stockmann’s strategy will focus on strengthening customer relationships and loyalty, improving the customer experience across all sales channels, fostering a customer-centric culture, and prioritizing profitable business operations. The company is also working on new lease agreements for specific properties to optimize its use of space.

One positive aspect of the restructuring plan is that Stockmann does not anticipate significant staff reductions. Additionally, the company has committed to paying small-scale creditors their full receivable amounts, as long as they do not exceed €5,000. So far, Stockmann has already repaid €0.7 million in small-scale liabilities and settled the receivables of over 400 creditors.

These actions are projected to reduce Stockmann’s unsecured debts by 20%, with creditors having the option to convert this portion of the restructuring debt into the company’s series B shares. The company has received support from its major creditors and shareholders, who represent 45.3% of shares and 62.6% of votes.

Overall, Stockmann’s restructuring plan is aimed at rejuvenating the company’s business operations and securing a profitable future. By keeping Lindex and implementing various measures, Stockmann is striving to adapt to industry changes and provide customers with an exceptional shopping experience across all platforms.

Useful links:
Stockmann Official Website
Lindex Official Website