Bankruptcy of Tiimari (Svago Oyj Abp and Svago Retail Oy)
The bankruptcy proceedings of the Tiimari retail chain began in 2013, and C&S Partner Pekka Jaatinen was appointed the estate administrator. The Helsinki stock exchange listed parent company Tiimari Oyj Abp and the operative company Tiimari Retail Oy were both declared bankrupt at the same time. The Tiimari group had 178 stores in Finland and approximately 650 employees. The company also operated in Estonia, Latvia and Lithuania and had been planning to expand to Sweden and Russia.
As soon as bankruptcy was declared, we began bankruptcy sales in cooperation with the company’s management. At the same time, the Baltic subsidiaries were wound down in a controlled manner and the parent company was delisted. Eventually, the Tiimari brand was sold and the group’s name was changed to Svago.
The income from the bankruptcy sales clearly exceeded the creditors’ expectations and the management’s budget. This success was thanks to the good timing of the bankruptcy sales in the Christmas season and the smooth cooperation between the management, employees and bankruptcy estates.
The unsecured creditors received 27% disbursements in the bankruptcy. The bankruptcy proceedings were closed relatively quickly given the scope of the estate when the creditors approved the final accounts on 14 November 2017.