Employees at the Insofa sofa factory in Lahti have been sent home due to the bankruptcy of furniture stores Asko and Sotka, affecting around 500 workers.
According to Yle's reports, employees at the Insofa oy sofa factory in Lahti have been sent home following the recent bankruptcy declarations of the furniture chains Asko and Sotka. The parent company, Indoor Group oy, along with its subsidiary Insofa oy, filed for bankruptcy on February 9, impacting a total of 74 stores and around 500 employees. The layoffs at Insofa have particularly affected nearly 100 workers at the Lahti manufacturing facility.
The local representatives are deeply concerned about the repercussions of the bankruptcy on the workforce. Ritva Loikkanen, the chief shop steward for Indoor Group, mentioned that a press conference is scheduled for Tuesday to provide information to the staff, and the union PAM will support its members during this difficult time. The layoffs from the Insofa sofa factory were officially communicated to employees on Monday, with a notice period of two weeks as per regulations.
The closure of the Insofa factory not only signifies a loss of jobs for many, but it also marks a significant shift in the Finnish furniture industry landscape, especially given the prominence of Asko and Sotka in the sector. This situation showcases the ongoing challenges faced by local businesses amid economic pressures, and raises questions about the future of similar companies in Finland's furniture market as the public awaits more details about the bankruptcy proceedings and potential rescue efforts.
