KH Group: The reform of Indoor Group’s operating model is moving forward — the company will commence change negotiations

KH Group Plc

Press release 10 October 2024 at 1:00 pm EEST

KH Group: The reform of Indoor Group’s operating model is moving forward — the company will commence change negotiations

On 15 August 2024, KH Group announced the launch of an extensive operating model reform aimed at improving the group company Indoor Group's profitability. The reform includes development initiatives to stabilise Indoor Group's financial situation in the challenging furniture industry market environment. Indoor Group aims for an annual operating profit improvement of at least EUR 10 million by the end of 2026. Based on current information, a significant part of the targeted profitability improvement is estimated to be realised already during 2025.

In order to implement the planned changes aimed at improving the efficiency of the operating model, Indoor Group will commence change negotiations in accordance with the Act on Co-operation within Undertakings on production-related and financial grounds. The change negotiations will begin on 21 October 2024 and the scope of the negotiations will cover approximately 635 employees. The planned changes may lead to the termination of up to 200 positions. The number and targeting of possible layoffs and dismissals will be specified during the negotiations.

"The planned measures are being initiated so that we can respond quickly to changes in the market. The reform under consideration is estimated to enable us to keep as many stores open as possible, and also open new ones," says Lauri Veijalainen, CEO of Indoor Group.

“Indoor Group is currently operating in a very challenging market situation, and the planned measures to optimise the efficiency of the organisation are necessary to make the business profitable again,” says Ville Nikulainen, CEO of KH Group.

KH Group will report the progress of Indoor Group’s operating model reform in connection with its regular financial reporting. The company will publish its January–September 2024 Business Review on Friday, 1 November 2024.

KH GROUP PLC

FURTHER INFORMATION:

CEO Ville Nikulainen, tel. 3

Indoor Group CEO Lauri Veijalainen, tel. 8

DISTRIBUTION:

Nasdaq Helsinki Ltd

Major media

KH Group Plc is a Nordic conglomerate operating in the business areas of KH-Koneet, Indoor Group and Nordic Rescue Group. We are a leading supplier of construction and earth-moving equipment, furniture and interior decoration retailer as well as rescue vehicle manufacturer. The objective of our strategy is to create an industrial group around the business of KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.