Finland’s Stockmann seeks modifications to mortgage phrases as mulls style chain’s destiny

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HELSINKI (Reuters) – Finnish retailer Stockmann mentioned on Monday it was in search of modifications to its mortgage situations to “present enough time” to think about whether or not to promote style chain Lindex or pursue different strategic choices for its most profitable unit.
Recognized for its prestigious department shops, Stockmann has struggled in recent times on account of a client shift to on-line buying, prompting price cuts and divestments.
Stockmann, which has not reported an annual internet revenue since 2013, mentioned it considers “soliciting consents from the holders” of its 85-million-euro hybrid bond, to alter its situations, a transfer that might enable it to pay the mortgage again “upon the incidence of potential divestment of Lindex”, it mentioned in an announcement.
Stockmann first introduced Lindex’s attainable divestment in August and has but to verify it.
“One attainable possibility is to surrender Lindex and for its half it can have an effect on total funding of which the bond is one half,” Stockmann’s chief monetary officer Pekka Vahahyyppa instructed Reuters.
After speedy enlargement till 2013, the group has struggled to search out new course for its companies and has needed to divest a number of models through the years.
The retailer had invested closely in department shops in Russia however by no means recovered from the ruble’s crash in 2014 and in 2018, Stockmann bought all of its remaining operations in Russia.
This 12 months, to resolve its indebtedness, the corporate’s house owners appointed seasoned reorganizer Lauri Ratia to chair its board and to save lots of the 157-year-old firm.
Ratia quickly assumed an govt position after the corporate’s chief govt left in March and in June Stockmann mentioned it will minimize round 150 jobs in Finland as a part of its objective to scale back prices by not less than 40 million euros by spring of 2021.

(Reporting by Anne Kauranen; Enhancing by Edmund Blair and Emelia Sithole-Matarise)

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