Parent company of Sotka and Asko, Indoor Group, files for debt 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 chains Sotka and Asko, has filed for debt restructuring. The news hit like a bolt from the blue, leaving many customers stunned and wondering: what happens to my money if the company goes under?
What's this all about?
Indoor Group is a major furniture conglomerate that employs hundreds of people in Finland and Estonia. It owns Sotka, Asko, and Indoor Group AS which operates in Estonia, including a store in Tallinn's popular Rocca al Mare shopping centre. In Estonia, the group is also known through the Lanterna brand. The company has now applied for debt restructuring because it is unable to meet its debt obligations. Restructuring gives a company the chance to reorganise its finances, but for customers, it's often bad news: deliveries get delayed, and money paid upfront isn't automatically protected.
What about those advance payments?
This is the tricky part. When you book a holiday, your money is protected – advance payments for travel packages are secured by a special guarantee. However, in the furniture business, the customer's position is weaker. If Indoor Group goes bankrupt, customers who have paid deposits for their orders become unsecured creditors. Unfortunately, this often means having to queue up with other creditors, and you might never see a single cent returned.
- Sotka – known for its more affordable price point and extensive range.
- Asko – a design-focused, higher-quality, and more premium brand.
- Lanterna – a brand operating in Estonia and other Baltic markets.
- Asko Rocca al Mare – Indoor Group's store in Tallinn's most popular shopping mall.
Currently, the company has submitted a restructuring application, but business continues as usual. Many stores are running their latest deals, enticing customers to make purchases. Still, you should think twice if a salesperson suggests paying the full amount upfront. The risk is real right now.
What should customers do?
If you've placed an order and paid part or all of the amount, but haven't received the 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 expected.
- If possible, request immediate delivery or suggest paying only upon delivery.
- Keep a close watch on news about Indoor Group's situation. If bankruptcy seems imminent, file a 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 though local brands may feel safe, financial troubles can lurk behind them. Let's keep our fingers crossed that both employees and customers get their money and their furniture.