Finland's Stockmann sells head office building to cover debts

Lindex Oyj

21/03/2022 07:24

March 21 (Reuters) - Struggling Finnish retailer Stockmann
 STCBV.HE  said on Monday it had sold its main department store
and head office building in the heart of Helsinki to Finnish
pension provider Keva for 400 million euros ($442 million) to
pay off debts.
    The 159-year old retailer initiated a restructuring
programme last year to avoid bankruptcy, after struggling for
years with debt accumulated from earlier expansions and a
consumer shift to online shopping.  L1N2KF14X 
    "Stockmann will continue its department store operations in
the entire building under a long lease-back agreement to be made
with the new owner," the group said in a statement.  
    Stockmann said the sale was subject to customary closing
conditions, expecting it to be completed by the end of April
2022 at the latest.
    
    ($1 = 0.9051 euros)

 (Reporting by Anne Kauranen; Editing by Edmund Blair)
 ((anne.kauranen@thomsonreuters.com; +358401895560))