What: Stockmann is increasingly getting disconnected from its real estate assets.

Why it is important: Even though such financial operations allow to reduce the burden of the debts, this also puts the company at risks in the future when it comes to paying rents in exceptional contexts such as the one we have been through for the past 2 years.

Finnish retail chain Stockmann has sold its department store properties in Tallinn and Riga for €87m, retaining the right to operate the stores through a lease-back agreement. The proceedings of the sale will be used to reduced guaranteed restructuring debts.

The department store company operates 6 units in Finland, in addition to the stores in Estonia and Latvia.

Stockmann sells department stores properties in Tallinn and Riga