HELSINKI (Reuters) — Finnish fashion and department store group Stockmann appointed a new chief executive and said it was planning to cut up to 380 jobs after posting another quarterly loss.
Stockmann has been hard hit this year a customers shift from upmarket department stores to online shopping, while the weaker Russian ruble and a recession in Finland have exacerbated its problems.
The company announced that Per Thelin, a Swede who has previously worked as the head of Inflight Service Group as well as Venue Retail Group, would be the new ceo effective Nov. 10. The current chief executive, Hannu Penttila, is resigning.
It added it would downsize its most troubled fashion chain Seppala in Finland and Estonia, and close all of the chain’s shops in other Baltic countries and Russia, aiming to cut up to 380 jobs.
Stockmann’s third-quarter operating loss was 15 million euros, or $19 million, compared to a profit of 11 million euros a year earlier. For the first nine months of the year, the operating loss stood at 55 million euros.
Stockmann repeated it expected its full-year core operating profit to be negative.
“In Finland, uncertainty will continue in the retail market. Demand for non-food products is expected to remain weak in the last quarter of the year, and the outlook remains unstable,” the company said.