Stockmann to end Zara franchising in Finland

1/30/2013 1:00 AM EST

Stockmann plc
Investor News

Stockmann to end Zara franchising in Finland

Helsinki, Finland, 2013-01-30 07:00 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Investor News 30.1.2013 at 8:00 EET 

Stockmann plc and INDITEX, S.A., the owner of the Zara store concept, have
agreed to end the franchising co-operation in Finland as of 1 March 2013. 

Stockmann is currently operating four Zara franchising stores in Finland. The
stores will be transferred to Inditex through a sale of Stockmann’s subsidiary
Z-Fashion Finland Oy that is responsible for the franchising business. All the
current Zara stores and their personnel of approx. 180 employees continue as
part of Z-Fashion Finland, under the Inditex Group. 

The divestment does not have a substantial effect on the Stockmann Group's
revenue or earnings. Revenue of Z-Fashion Finland totalled EUR 22 million in
2012. The franchising co-operation started in 2002 and the cumulative operating
profit for Stockmann is slightly positive. The purchase price covers the net
assets of Z-Fashion Finland in the balance sheet. 

The termination of the Zara franchising operation is in line with Stockmann’s
strategy and enables the Department Store Division to focus on its own core
business. During 2012 Stockmann also discontinued its loss-making Bestseller
franchising operations in Russia. 

Further information:
Maisa Romanainen, Executive Vice President, Director for the Department Store
Division, tel. +358 9 121 5230 

www.stockmanngroup.com


STOCKMANN plc

Hannu Penttilä
CEO


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