On Tuesday, brand house Manna & Co announced that its creditors had failed to reach an agreement on the company's restructuring programme.
The firm entered corporate restructuring proceedings a year and a half ago.
Founded in 2021, Manna & Co is the parent company of several well-known Finnish brands, including textile company Finlayson, clothing label Makia, and interior and textile brand Vallila Interior. In 2022, Manna & Co acquired the Swedish home goods and textile brand Lexington through a leveraged deal.
"The core challenge has been the parent company’s excessive debt burden, for which no solution could be found during the prolonged restructuring process," Risto Voutilainen, the principal owner of Manna & Co, said in the company’s statement.
He also highlighted the prolonged downturn in consumer markets as a contributing factor.
Manna & Co's shareholders have submitted bids to the bankruptcy estate to acquire the shares and business operations of the subsidiary companies.
Under the new structure, the Finlayson & Co Oy group would take ownership of Finlayson, Vallila, Makia, as well as Reino & Aino. Lexington would be separated into its own entity, Lexington & Co, while Vallila Contract, which focuses on business-to-business, would become an independent company.
Helsingin Sanomat was the first to report the news of the bankruptcy filing.
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