The bankruptcy of Indoor Group is leaving over 80 employees at Asko’s sofa factory in Lahti without jobs. The Helsinki District Court declared Asko and Sotka’s parent company, Indoor Group, bankrupt on Tuesday. Indoor Group’s subsidiary, Insofa oy – also known as the Asko sofa factory – filed for bankruptcy at the same time. Lahti already has some of the highest unemployment rates of any major city in Finland.
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The city has seen several negative economic developments recently. Sinuhe Bakery filed for bankruptcy in December, resulting in 70 job losses. In January, the City of Lahti announced it would be reducing 78 positions.
The Indoor Group bankruptcy came as a surprise to many Asko sofa factory employees. Information about the bankruptcy was not consistently communicated to all employees, and the company’s communication with the public and the press has been minimal.
Yle attempted to contact Indoor Group CEO Kati Kivimäki and bankruptcy administrator Tuomas Penttilä, but was unsuccessful.
One employee caught off guard by the bankruptcy is Jere Kujala. He has worked at the Asko sofa factory for about ten years in various roles, most recently as a model carpenter designing new sofa models.
Kujala says he first learned of Indoor Group’s situation on the radio. “I was at work when I heard on the radio that the company had filed for bankruptcy. Even the managers couldn’t say much about the situation because they didn’t know anything yet.”
Kujala says employees continued working last week despite the news. “We were hoping for the best. We didn’t yet have information about the actual amount of debt. We believed it was just a few million euros, which a company of this size could survive.”
Indoor Group’s filing with the Helsinki District Court reveals the company’s debts total 55.8 million euros, with assets of 18.5 million euros. Insofa, the Lahti sofa factory, is Indoor Group’s largest creditor.
Kujala notes that Indoor Group has not communicated much with employees. He does praise the factory managers at Insofa for attempting to answer questions despite limited information.
As of Wednesday afternoon, Kujala was unsure of his future. A decision on Insofa’s bankruptcy had not yet been made. Kujala was subject to a work obligation if called upon by his employer, but received a termination notice via email later that day.
Indoor Group has also been unable to pay its employees, meaning wages will be sought through the salary guarantee fund.
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Kujala has already begun looking for other work, but the situation is not promising. “It’s tough when you have to think about where to go to work again. The carpentry side has grow quite quiet. There are some small companies, I’ve applied to one. I guess I’ll have to question around to see if there are any vacancies.”
Frequently Asked Questions
What happened to Asko and Sotka?
Asko and Sotka’s parent company, Indoor Group, filed for bankruptcy on Tuesday. The company’s subsidiary, Insofa oy (the Asko sofa factory), also filed for bankruptcy at the same time.
How many people are affected by the bankruptcy?
Over 80 employees at the Asko sofa factory in Lahti are without jobs. Asko and Sotka together employed over 500 people and operated 74 stores.
What will happen to unpaid wages?
Employees will have to apply for unpaid wages through the salary guarantee fund.
What impact will the closure of these stores have on the wider Lahti economy?
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