Swedish Hemtex to divest store portfolio in Norway

22 Mar '10

2 min read

The home textile chain Hemtex has performed a thorough analysis during the year aimed at mapping the Group's market situation in and outside Sweden. Based on this work, Hemtex disclosed in its year-end report, which was issued on February 16, 2010, that the Group is to implement a responsible divestment of Group stores in Denmark, reduce the number stores in Finland by approximately half and review the store portfolio in Norway. This review has now been completed. Accordingly, the Group has decided to implement a responsible divestment of all ten stores in Norway.

”The divestment of operations in Norway is regrettable but is simultaneously essential to our efforts to ensure that the New Hemtex takes shape. Hemtex is implementing a renewal program aimed at achieving a more distinct direction in the form of a new store concept and a more up-to-date range. The decision about Norway means that the process involving the Group's international strategy has now been completed,” says Erik Gumabon, Hemtex's President and Chief Executive Officer.

A responsible divestment of the store portfolio entails that Hemtex will fulfill all concluded agreements and live up to the rigorous demands of an employee in terms of providing
information, as well as obligations in relation to employees and partners. Negotiations regarding leases for premises will be initiated immediately and the impending divestment will be implemented as this process progresses.

Hemtex has a total of ten stores in Norway, with 75 employees. The loss incurred in Norway in 2009 amounted to SEK 32 M.

Hemtex AB

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