Off the wire
• Kenyan police issue alert over loss of diplomatic car plates  • Ukraine's agricultural exports to Russia down 72.9 pct in first 10 months of 2015  • Africa Focus: Chinese envoy says Xi's visit to raise China-Zimbabwe relations to new high  • Adolescent deaths from AIDS tripled since 2000: UNICEF  • Netherlands to provide extra housing and shelter for refugees  • LME base metals close lower on Friday  • Interview: UN chief says "optimistic" about success of Paris conference on climate change  • Injuries mount up for Real Madrid coach Benitez  • Feature: Winston Churchill's alma mater aspires to educate future leaders of oriental world  • Roundup: Greece beefs up security measures, calls for comprehensive terror response  
You are here: 　 Home

Stockmann sells department stores in Russia

Xinhua, November 28, 2015 Adjust font size:

Finnish department stores Stockmann announced on Friday that it will sell the stock of its Russia-based subsidiary to Reviva Holdings Ltd. at 5 million euros (5.3 million U.S. dollars).

Stockmann operates five department stores in Moscow, one in St. Petersburg and one in Jekaterinburg, plus an outlet store and logistical systems.

Stockman CEO Per Thelin said in Helsinki on Friday that the department stores had been losing money in Russia for several years. Stockmann's turnover in Russia in 2014 was 240 million euros and losses stood at 26 million euros.

Stockmanan department stores will continue operations in Finland and the Baltic region.

The deal is to be completed by the end of January. It requires approval by Russian authorities.

Reviva will be allowed to use the brand of Stockmann for two years. According to Stockmann, the new owner will keep all stores in operation and plans to use the brand name of Debenhams gradually.

Reviva owns Debrus, the Russian franchise of Debenhams.

Stockmann will remain in real estate business in Russia and will also continue as the owner of Nevsky Centre mall in St. Petersburg.

The renowned Finnish company has been plagued by losses in Finland as well and has accepted outside store owners operating on its premises. It announced earlier that Stockmann in Oulu, Northern Finland, will close. Endit