Lindex Group has announced plans to shut down a Stockmann department store at the Itis Shopping Centre in East Helsinki.
The firm said it would initiate negotiations with worker representatives regarding all of the outlet's staff of around 35 people.
Stockmann's lease agreement at the mall is set to expire on 1 August.
According to the COO of Lindex's Stockmann division, Riku Lyly, the company tried negotiating a lease extension agreement, but was unable to reach a sustainable solution.
Negotiations with employee representatives are expected to last about six weeks. The company said that plans will be finalised as the talks progress.
Lindex Group said it was looking into employment opportunities for affected staff members at other locations.
Apart from the outlet in East Helsinki, Stockmann operates department stores in downtown Helsinki, Vantaa, Espoo, Turku, and Tampere. It also has outlets in Riga, Latvia and Tallinn, Estonia, as well as an online store.
The department store chain first moved into Itis in 1992.
It closed its Herkku-branded grocery store at the site in the summer of 2023. Later that year, the Alanya Market, specialising in Turkish foods, opened in the same space.
Sale plans on hold
Late last year, Lindex Group announced that it was postponing a decision about selling off the Stockmann chain until sometime this year.
Roughly a year ago, the firm announced plans to change its name from Stockmann Group to Lindex Group, then it formally decided to make the change at its spring general meeting.
Stockmann posted losses of just under four million euros at the end of last year, while Lindex Group announced adjusted profits of 36.1 million euros.
In 2022, Stockmann sold its flagship store's building in downtown Helsinki to pension company Keva for around 400 million euros, but has continued operations at the site.
The department store chain was established in 1862 but, like many retailers of its kind, has struggled in recent years.
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