Tiimari Files for Bankruptcy Protection as Funding Bid FailsKati Pohjanpalo
Tiimari Oyj, a Finnish retailer that sells stationery and craft materials, filed for bankruptcy protection after failing to find funding.
Tiimari wasn’t able to secure enough financing to stay in business, the Vantaa, Finland-based company said in a statement to the Helsinki stock exchange today. The shares were halted at 0.07 euros at 4:17 p.m. yesterday in the Finnish capital pending an announcement from the company.
“We’re extremely sorry that the existing economic uncertainty and waning demand in retail trade nullified the measures taken over the past few years aimed at developing the business, improving sales and reaching profitability,” Chairman Benedict Wrede and Chief Executive Officer Niila Rajala said in a statement.
Tiimari, whose shares have slumped 89 percent this year, has lost 66.9 million euros ($89.3 million) over the past five years, according to data compiled by Bloomberg. The company has lowered guidance twice this year and said in July it will cut 70 jobs and reduce the store network by 24 to 151 shops. Its sales fell an annual 7.4 percent this year through August.
The company examined several other refinancing possibilities, including sales of assets and operations, and obtaining bank loans or other external funding, without success. A reorganization of operations wouldn’t have secured the continuance of operations, it said.