Stockmann reports 49% plunge in March sales as it looks to restructure

Lindex Oyj

30/04/2020 10:38

April 30 (Reuters) - Finland's Stockmann  STCBV.HE  suffered
a 49.1% fall in March sales hurt by the impact of the
coronavirus, said the department store operator, which has filed
for corporate restructuring.
    Its adjusted operating loss widened to 30.5 million euros
from 21.4 million a year earlier, it said.
    Shares in the company were down 4.2% by 0900 GMT.   
    Known for its upmarket department stores, Stockmann has
struggled for years in the face of a consumer shift to online
shopping, prompting cost cuts and divestments.
    On April 6, Stockmann announced it would file for corporate
restructuring.  urn:newsml:reuters.com:*:nL8N2BU164
    A day later it said more than 50% of its creditors had
indicated they supported the restructuring, a form of
administration in which a court appointee is charged with
restructuring the company to avoid bankruptcy.  L8N2BV1CZ 
    CEO Jari Latvanen said group sales in January-February had
been on a healthy level with growth of 3.5%.
    "Unfortunately, the unprecedented situation caused by the
coronavirus led to an extreme decline in customer volumes and
sales after the first week of March," Latvanen said in a
statement.
    Strong sales growth in the online stores of Stockmann and
its fashion subsidiary Lindex in recent weeks had not been
enough to compensate for that drastic fall, he said.

 (Reporting by Anne Kauranen; editing by Jason Neely)
 ((anne.kauranen@thomsonreuters.com; +358925166112;))