Stockmann plc, a Finnish retail company, has recently been granted temporary debt collection protection by the District Court of Helsinki as part of its ongoing parent company restructuring process. In addition, Attorney Jyrki Tähtinen has been appointed as the interim administrator for the company. This move by Stockmann aligns with a growing trend among retailers who are seeking to safeguard themselves from creditors amidst the current economic crisis. For instance, just yesterday, UK-based Debenhams announced its decision to enter administration, aiming to reopen its department stores once the situation stabilizes.
Stockmann’s board is scheduled to hold a general meeting soon to discuss the potential extension of the restructuring proceedings. The decision to file for restructuring was directly influenced by the detrimental impact of the ongoing coronavirus pandemic on global fashion retail sales. Nevertheless, the company has clarified that its two retail divisions, Stockmann itself and the Lindex fashion chain, will not be adversely affected by the restructuring.
Despite the challenges caused by the pandemic, Stockmann has made significant strides in executing its turnaround program. The company is anticipated to release its interim report for the first quarter of the year at the end of this month. Furthermore, Stockmann will provide new guidance as soon as there is improved visibility in its markets.
As the ongoing pandemic continues to exert immense pressure on retailers worldwide, companies like Stockmann are implementing necessary measures to ensure their survival during these uncertain times. By acquiring debt collection protection and appointing an administrator, Stockmann aims to navigate the current crisis and emerge even stronger on the other side.
Useful additional resources related to the article:
1. For more information on the restructuring process and debt collection protection granted to Stockmann, please visit: URL1.
2. To gain insights into the impact of the ongoing coronavirus pandemic on retailers, explore: URL2.