Stockmann cuts down heavily in fashion chain Seppälä’s operations.
Finland will lose a significant number of stores. 380 of 800 employees will lose their jobs.
Stockmann reports that Seppälä’s brand renewal and turnaround project to improve profitability have not brought the desired results. The operating losses have increased during this year.
“To break the loss spiral we are planning significant downsizing in Seppälä’s operations in the main markets in Finland and Estonia. Seppälä plans to withdraw from the other Baltic countries and Russia during 2015. This is a regrettable step for Seppälä’s staff, but it is necessary in order to make the Group’s earnings profitable again,” Stockmann Group’s Chairman Kaj-Gustaf Bergh comments.
According to Finnish media 380 jobs will be cut off.
Seppälä lost 14.4 million EUR last year. This year the chain will lose more than 25 millions.