MARIMEKKO IS PLANNING TO ADJUST ITS OPERATIONS IN THE CORONAVIRUS SITUATION AND INITIATES COOPERATION PROCEDURE

Marimekko Corporation, Press Release, 25 March 2020 at 8.45 a.m.

The Coronavirus pandemic in Marimekko’s key markets has clearly weakened the consumer demand outlook and thus decreased the amount of work available in retail operations. If prolonged, the exceptional circumstance can have significant impacts in the company’s sales and profitability.

The health and well-being of the personnel and customers is Marimekko’s priority. The company has already temporarily closed its company-owned retail stores in the United States, Australia, Germany, Denmark and Norway, and will temporarily close its company-owned retail stores also in Finland and Sweden this week.

In order to adjust the personnel to the amount of work, and to minimize the negative financial impacts of the coronavirus (COVID-19) pandemic on its business operations, Marimekko will initiate consultative negotiations under the Act on Cooperation within Undertakings on temporary maximum 90 days layoffs affecting its retail sales personnel, including retail support function, in Finland. Corresponding personnel adjustment measures will also be commenced in the company’s retail operations in Sweden, Denmark, Norway, Germany, the United States and Australia. All of the company’s fixed costs will also be scrutinized.

”The Coronavirus pandemic is a true human crisis touching us all, the impacts of which on the economy and consumer demand – especially in case the exceptional situation prolongs – are substantial. Marimekko has a strong balance sheet and sound financial situation thanks to the great work done by all Marimekko employees in the past few years. However, the effects of this exceptional circumstance affect also us. Therefore, we unfortunately need to commence measures to adjust our personnel to the amount of work available in order to secure the financial position of our company and through that our jobs in the long-term view in as large scale as possible. Despite this challenging situation, I am convinced that Marimekko will get through this difficult time supported by our competitiveness and our unique culture, the Marimekko Spirit,” says Tiina Alahuhta-Kasko, President and CEO.

The consultative negotiations include all personnel in Marimekko’s retail sales operations in Finland, including retail support function.

The measures in the different markets may lead to temporary full-time or part-time layoffs of personnel.

At the end of December 2019, a total of 189 employees (FTE) worked in Marimekko’s company-owned retail sales operations in Finland, including retail support function, and 86, including support functions, in other market areas. The negotiations in Finland will commence on 30 March 2020, and they are estimated to last a maximum of 14 days.


Further information:
Tiina Alahuhta-Kasko, President, tel. +358 9 758 71

DISTRIBUTION:
Key media

Marimekko is a Finnish lifestyle design company renowned for its original prints and colors. The company’s product portfolio includes high-quality clothing, bags and accessories as well as home décor items ranging from textiles to tableware. When Marimekko was founded in 1951, its unparalleled printed fabrics gave it a strong and unique identity. Marimekko products are sold in about 40 countries. In 2019, brand sales of the products worldwide amounted to EUR 251 million and the company's net sales were EUR 125 million. Roughly 150 Marimekko stores serve customers around the globe. The key markets are Northern Europe, North America and the Asia-Pacific region. The Group employs about 450 people. The company’s share is quoted on Nasdaq Helsinki Ltd. www.marimekko.com