Moscow. February 1. Finnish Stockmann Group (controls clothing stores Lindex, Seppala and Stockmann Department stores) closed the sale of its Department stores in Russia company Reviva Holdings Limited, the owner of LLC “Debrass”, the Russian franchisee of Debenhams Department stores.
Reviva acquired 100% of JSC “Stockmann” and from February 1 will be to manage a family of Russian Department stores “Stockmann”, is spoken in the message of the Finnish company. The deal was approved by Federal Antimonopoly service.
Sale of Russian Department stores – Stockmann part of a strategy to optimize the network and return to profitability. In Russia the company will continue to manage the shopping Mall “Nevsky” in St. Petersburg. The performance of Department stores will be reflected in the report for year 2015 in the section “discontinued operations”.
The deal was announced in late November 2015. It will be cash, the amount of 5 million euros reported at the time, Stockmann. Under the terms of the transaction, Reviva will have the right to use the brand Stockmann in Russia for two years and during that time Reviva will put the stores under the Debenhams brand.
The decision to sell the Department stores in Russia, Stockmann explained their unprofitability. “The Russian Department stores were unprofitable last few years, and a strong devaluation of the ruble increased the losses. Stockmann aims to return to profitability and therefore took the decision to sell these assets,” said CEO Per Thelin, Stockmann.
Initially, the company was planning to close three of the Department store, located in shopping centres “Mega” in Moscow. In addition, in connection with risks in the Russian retail market Stockmann previously announced the closure of single-brand stores Lindex in Russia. The closure of the remaining stores planned for the summer of 2016.
In 2014 Stockmann announced that by 2016 it will close stores in Russia Seppala.
Stockmann Group Stockmann operates Department stores, mono-brand clothing stores Lindex and Seppala. The company was founded in 1862, it now operates in 16 countries, including Russia (since 1989).