Stockmann plc gets debt collection protection, administrator named
Stockmann offered a further update on its parent company restructuring process on Tuesday saying that the District Court of Helsinki has ruled a temporary prohibition of debt collection for Stockmann plc and appointed Attorney Jyrki Tähtinen as interim administrator.
It also said that more than half of the plc's creditors “have indicated a positive stance to the filing for corporate restructuring”.
Actions to protect themselves from creditors are becoming increasingly common among retailers with UK-based Debenhams saying on Monday that it would file for administration with the aim of exiting the process once it's able to reopen it's department stores.
Stockmann’s board will now convene a general meeting, at a date to be announced later, to decide on the possible extension of the restructuring proceedings.
The restructuring filing was announced on Monday as a direct reaction to the coronavirus pandemic that has devastated sales for fashion retailers in many countries around the world. The company was also at pains to mention that its two retail divisions, Stockmann itself and the Lindex fashion chain, won't be affected.
The company, which has been successfully working through a turnaround programme for some time, will publish its interim report for the quarter from January to March at the end of this month and also said it will provide new guidance “when visibility in the company’s markets is clearer”.
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