Indoor Group, parent company of Sotka and Asko, files for corporate restructuring – Could customers lose their advance payments?

If you've recently paid for a new sofa or dining table at Sotka or Asko and haven't received your items yet, now is the time to pay close attention. Indoor Group, better known through its retail chains Sotka and Asko, has filed for corporate restructuring. The news has hit like a bolt from the blue, leaving many customers bewildered and worried: what happens to your money if the company goes under?

What's this all about?

Indoor Group is a major furniture conglomerate employing hundreds of people in Finland and Estonia. It owns Sotka, Asko, and also operates in Estonia as Indoor Group AS, which has a store in Tallinn's Rocca al Mare shopping centre, among others. In Estonia, the group is also known through the Lanterna brand. The company has now sought corporate restructuring because it is unable to meet its debt obligations. Restructuring is a process that gives a company the chance to reorganise its finances, but it's often bad news for customers: deliveries get delayed, and money paid in advance isn't automatically protected.

What about those advance payments?

Here's the tricky part. When you book a holiday, your money is protected – advance payments for package tours are secured by a special guarantee. But in the furniture business, the customer's position is much weaker. If Indoor Group goes bankrupt, customers who have paid advances on their orders become unsecured creditors. Unfortunately, this typically means you'll have to queue up with all the other creditors, and there's a real chance you may never see a single rupee of your money again.

• Sotka – Known for its more affordable price range and extensive collections.
• Asko – A design-focused, higher-quality, and more premium brand.
• Lanterna – A brand operating in Estonia and other Baltic markets.
• Asko Rocca al Mare – An Indoor Group store located in Tallinn's most popular shopping centre.

Currently, the company has filed for restructuring, but its stores are still open for business. Many outlets are running latest offers and promotions to attract customers. However, you should think twice if a salesperson suggests paying the full amount in advance. The risk is very real right now.

What should customers do?

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

• Contact the store immediately and check on your order status. The restructuring process doesn't automatically cancel orders, but delays are expected.
• If possible, request expedited delivery or suggest paying only when the items are at your doorstep.
• Keep a close watch on news about Indoor Group's situation. If bankruptcy seems imminent, file a formal complaint and, if necessary, register your claim with the bankruptcy estate.

Let's hope we all get through this with just a scare. This is a stark reminder that even homegrown brands we trust can face serious financial troubles behind the scenes. Fingers crossed that both employees and customers eventually get their money and their furniture.