The Indoor Group, the parent company of Asko and Sotka furniture chains, is unable to pay its approximately 500 employees due to bankruptcy following prolonged financial difficulties.
Indoor Group, which owns the furniture chains Asko and Sotka, has declared bankruptcy after suffering from ongoing financial difficulties. According to the chief union steward Ritva Loikkanen, around 500 employees currently work at the two chains and are now facing delays in salary payments. The company is trying to secure salary payments through a centralized salary guarantee initiative, indicating the significant number of staff affected by this situation.
The processing time for salary guarantee applications has been notably lengthy, averaging about ten months at the turn of the year, according to information from the KEHA center. This delay in payments compounds the difficulties these employees now face following the insolvency of their employer. The company's financial statements reveal a troubling picture with total debts amounting to 55.8 million euros against assets of only 18.5 million euros, underscoring the severity of its financial struggles.
This incident not only highlights the economic challenges faced by private companies in Finland but also raises concerns regarding the welfare and financial security of employees in similar positions. News of the salary payment issues was first reported by Ilta-Sanomat, drawing attention to an urgent and distressing situation for workers within the furniture retail sector as they navigate the fallout from the company's bankruptcy.
