Stockmann to end Zara franchising in Finland
Helsinki, Finland, 2013-01-30 07:00 CET (GLOBE NEWSWIRE) —
STOCKMANN plc, Investor News 30.1.2013 at 8:00 EET
Stockmann plc and INDITEX, S.A., the owner of the Zara store concept, have agreed to end the franchising co-operation in Finland as of 1 March 2013.
Stockmann is currently operating four Zara franchising stores in Finland. The stores will be transferred to Inditex through a sale of Stockmann’s subsidiary Z-Fashion Finland Oy that is responsible for the franchising business. All the current Zara stores and their personnel of approx. 180 employees continue as part of Z-Fashion Finland, under the Inditex Group.
The divestment does not have a substantial effect on the Stockmann Group’s revenue or earnings. Revenue of Z-Fashion Finland totalled EUR 22 million in 2012. The franchising co-operation started in 2002 and the cumulative operating profit for Stockmann is slightly positive. The purchase price covers the net assets of Z-Fashion Finland in the balance sheet.
The termination of the Zara franchising operation is in line with Stockmann’s strategy and enables the Department Store Division to focus on its own core business. During 2012 Stockmann also discontinued its loss-making Bestseller franchising operations in Russia.
Maisa Romanainen, Executive Vice President, Director for the Department Store Division, tel. +358 9 121 5230