Finland's Stockmann plans Russian store closures, divestment

HELSINKI, Finland - Stockmann will close 16 Seppala fashion stores in Russia and seek to sell its Hobby Hall mail order business with annual sales of about 100 million euros ($126 million), the Finnish department store and fashion chain group said on Thursday.

Stockmann will also introduce a new operating structure with three divisions - retail, real estate and fashion chains - from the beginning of the next year.

Stockmann has forecast its 2014 profit will drop significantly due to a weakened Russian rouble as well as slow Finnish demand. Its chief executive stepped down in August.

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