Kuopio shirt maker seeks restructuring after two loss-making years

Yle reports that Petrifun, a Kuopio-based manufacturer of men’s shirts, has applied for corporate restructuring to reduce its debt burden and avoid bankruptcy.

The company submitted its application to the North Savo District Court on Monday. Chief executive Petri Satuli said rising costs and insufficient sales growth had contributed to the company’s financial difficulties.

Sales fell most sharply during the coronavirus pandemic, when Petrifun’s shops were closed for extended periods. Satuli also cited the war in Ukraine, the war in Iran and jumps in petrol prices as factors affecting men’s clothing purchases.

Petrifun is reducing the number of its shops. The company previously operated six stores, but its shop in Espoo has closed and a closing-down sale is under way at the Koskikeskus shopping centre in Tampere.

Satuli said long leases at shopping centres with foreign ownership had made it difficult to reduce costs when sales were insufficient. He said the company had misjudged the expected purchasing power and locations at the Redi and Tripla shopping centres in Helsinki.

Petrifun’s revenue for the financial year ending in January was 1.9 million euros, while its operating result showed a loss of 140,000 euros. The previous financial year was also loss-making.

Corporate restructuring is intended to adjust the company’s debts and payments to its ability to pay and prevent bankruptcy. Satuli said Petrifun had a substantial amount of debt, including liabilities dating from before he became chief executive in 2001.

He said the company had 70,000 purchasing members in its customer loyalty programme. Petrifun competes on quality rather than price with low-cost fast fashion, and most of its products are made in Vietnam.

Founded in 1973 as Petritex, Petrifun handles the design, marketing and sales of its products in Kuopio. The company has 18 employees.