Finnish Marimekko finds buyer for Grünstein furs

print this

One of Finland's most famous brands, Marimekko Corporation, has sold the entire share capital of fur manufacturer Grünstein Product Oy to Gemmi Oy, a company owned by Sirpa Lanamäki and Arja Miettinen. The contract was signed on Friday of last week. Marimekko is known for its clothes, accessories, and home furnishings.
      The total value of the transaction is EUR 2.3 million, including interest-bearing liabilities of EUR 1.3 million. The Marimekko Group will book a loss of approximately EUR 1.3 million on the deal and the parent company a loss of EUR 1 million.
      In 2003, Grünstein's net sales amounted to EUR 3.7 million, or around 6% of the Marimekko Group's net sales. Grünstein employs 40 people.
     
Marimekko acquired Grünstein in August 2000. The company's business operations have not met the targets set by Marimekko. Prior to the final decision, Marimekko negotiated with several potential buyers for the sale of Grünstein for a couple of years.
      ”This is a really big relief for me. I regard the purchase of Grünstein as my only big mistake”, says Kirsti Paakkanen, President of the Marimekko Group. She says that the merger of Marimekko and Grünstein turned out to be all but the great alliance that had been envisioned.
      Gradually, the fur business turned into a burden that tarnished Marimekko’s good image. The profits did not meet the targets, either. In addition to the adverse animal-rights publicity gained by the acquisition, Marimekko discovered that Grünstein was not opening up new markets for it after all.
      ”The results were a zero. I have to admit, however, that eventually we did not invest in the company, either. I just hope that it will be more successful in new hands”, says Paakkanen.
      Marimekko’s fur business and even Paakkanen herself have frequently been targets for anti-fur farming protestors. Paakkanen has been harassed even in her private life.
      Moreover, Finnish film-maker Aki Kaurismäki recently turned down an honorary doctorate from the Helsinki University of Art and Design in protest, saying he did not wish to belong to a club whose members included the Marimekko CEO Kirsti Paakkanen.
      On the other hand, "How is it possible that the Finnish government provided premises for an international meeting against fur farming even though fur farming is a legal source of livelihood in Finland?" Paakkanen wonders.
     
Gemmi is Grünstein’s auxiliary business name, and will now become a holding company owned by Sirpa Lanamäki and Arja Miettinen of Helsinki.
      Lanamäki and Miettinen have faith in the business and in Grünstein’s possibilities. "The company has all the qualifications for growth, a good personnel as well as new production premises. We also have all the potential to develop the company more than the previous owner could do", says Sirpa Lanamäki.
      According to Lanamäki, Grünstein does not depend on the domestic markets, as 80% of its production is exported.
      ”As for product development, we believe that we can create new possibilities to use fur for accessories and home furnishings”, she adds.


Links:
  Marimekko
  Grünstein

Helsingin Sanomat