Despite continued strong growth in recent weeks in the webstores of Stockmann and Lindex, the online sales growth cannot compensate for the drastic decline in customer volumes in the current exceptional situation.
After the first week of March, the coronavirus (COVID-19) epidemic in Europe has caused significant changes in the operating environment of Stockmann Group, with customer volumes decreasing suddenly. Despite continued strong growth in recent weeks in the webstores of Stockmann and Lindex, the online sales growth cannot compensate for the drastic decline in customer volumes in the current exceptional situation.
As the company’s business remains viable and can be restored to a sound basis, the Board of Directors of Stockmann has decided, taking into consideration the company’s financial structure, to file for restructuring proceedings for Stockmann plc. The coronavirus and the restrictions it has caused have, and will continue to have, a significant impact on the company’s customer volumes and cash flow.
“Stockmann and Lindex have been working very hard to develop and renew the company’s business, with the objective of getting both business operations on a growth track by 2021. The strategic choices made in spring 2019 have proven to be correct, and the Group’s business operations have developed as planned in 2019 and in January–February 2020. However, the unprecedented situation caused by the coronavirus has led to an extreme decline in customer volumes, depleting the company’s cash in hand. In this very difficult situation, the Board has decided to file for the corporate restructuring of Stockmann plc. The Board is convinced that with the initiatives already launched, Stockmann Group has the preconditions for profitable business,” says Lauri Ratia, Chairman of the Board of Directors of Stockmann plc.
