Sotka and Asko parent company Indoor Group enters corporate restructuring – Could customers lose their upfront payments?

If you've recently forked out for a new sofa or dining table at Sotka or Asko and are still waiting for delivery, now's the time to pay attention. Indoor Group, better known through its Sotka and Asko chains, has filed for corporate restructuring. The news has landed like a bolt from the blue, leaving many customers scratching their heads and wondering: where does my money actually end up if the company goes under?

What's this all about?

Indoor Group is a major furniture group employing hundreds of people in Finland and Estonia. It encompasses Sotka, Asko, and Indoor Group AS which operates in Estonia, including a store in Tallinn's Rocca al Mare shopping centre. In Estonia, the group is also known through the Lanterna brand. The company has now applied for corporate restructuring because it's struggling with its debts. Restructuring is meant to give a company a chance to sort out its finances, but it's often bad news for customers: deliveries are delayed, and money paid upfront isn't automatically protected.

What about those upfront payments?

Here's the tricky part. When you book a trip, your money is protected – holiday package upfront payments are covered by a special guarantee. But in the furniture game, the customer is in a much weaker position. If Indoor Group goes bust, customers who have paid deposits on their orders become unsecured creditors. Unfortunately, that usually means you'll be lining up with everyone else to get your money back, and you might not see a cent.

• Sotka – known for its more affordable price points and extensive range.
• Asko – a design-led, higher-quality, and pricier brand.
• Lanterna – the brand operating in Estonia and other Baltic markets.
• Asko Rocca al Mare – Indoor Group's store in Tallinn's popular shopping centre.

Right now, the company has filed for restructuring, but the doors are still open. Many stores are advertising their latest deals, trying to entice customers. Still, you'd want to think twice if a salesperson suggests paying the full amount upfront. The risk is real at the moment.

What should customers do?

If you've placed an order and paid part or all of the amount, but haven't received your goods, here's what to do:

• Contact the store and ask about your order status. The restructuring process doesn't automatically cancel orders, but delays are likely.
• If possible, ask for speedy delivery or suggest paying only when the item is at your door.
• Keep a close eye on news about Indoor Group's situation. If bankruptcy looks imminent, lodge a formal complaint and, if necessary, register your claim with the bankruptcy estate.

Hopefully, we'll all get through this with just a scare. It's a stark reminder that even familiar local brands can have financial troubles brewing behind the scenes. Fingers crossed that both employees and customers get their money and their furniture.