Stockmann plans management buyout of Seppälä
Helsinki, Finland, 2015-02-02 07:30 CET (GLOBE NEWSWIRE) --
STOCKMANN plc, Company Announcement 2.2.2015 at 8:30 EET
Stockmann has signed a memorandum of understanding regarding the selling of its subsidiary, Seppälä Oy, in a management buyout to Seppälä’s current CEO, Eveliina Melentjeff and her husband Timo Melentjeff. The transaction will take place on 1 April 2015 and will cover 82 Seppälä stores in Finland and 20 in Estonia.
According to its new strategy, Stockmann will focus on its key businesses, Stockmann Retail, Real Estate and Lindex, and will gradually withdraw from its other businesses. Going forward, Seppälä will have a committed owner that is fully focused on rejuvenating Seppälä’s operations in its main markets.
”This transaction will secure the continuity of the Seppälä brand and its over 80-year heritage. Seppälä will continue to have the widest network of fashion stores in Finland. The buyout will also help to sustain a business which will employ around 500 people in Finland, and with these dedicated fashion experts we will put Seppälä back in people’s minds,” says Eveliina Melentjeff, CEO of Seppälä.
After the codetermination negotiations that ended in December, Seppälä decided to downsize its store network by 41 stores in Finland and the reductions will affect approx. 200 people in the stores. Seppälä will continue to have over 100 stores in Finland and Estonia, and will employ around 600 people in these two countries. The remaining stores in Latvia, Lithuania and Russia will be closed down.
Seppälä's revenue in 2014 was EUR 92.6 million. The purchase price of Seppälä will not have a significant effect on Stockmann’s earnings. Financial result including non-recurring expenses, which mainly relate to lease liabilities of the closing stores, will be specified in Stockmann’s 2014 Financial Statement Bulletin on 13 February 2015.
Seppälä and Stockmann will arrange a press briefing today, 2 February 2015 at 13:00 EET, in Seppälä’s store in the Jumbo shopping centre (1st floor) in Vantaa. Seppälä’s CEO Eveliina Melentjeff and Stockmann’s Chief Strategy Officer Kjell Sundström will be present. Please register for the event by e-mail email@example.com or by phone +358 9 121 3089.
Eveliina Melentjeff, CEO, Seppälä, tel. +358 9 121 7280
Kjell Sundström, Chief Strategy Officer, Stockmann, tel. +358 9 121 5877
Nora Malin, Director, Corporate Communications, Stockmann, tel. +358 9 121 3558