The domestic fashion brand Nosh drifted to apply for corporate restructuring. Nosh
We previously reported on the domestic clothing brand Nosh Company drifting into corporate reorganization on January 7, 2025 due to financial difficulties. CEO of the company Hanna Rannila analyzes in the interview what the cause of the brand’s predicament is.
Nosh was a strong growth company at the start of the pandemic. Due to the weakened demand due to Corona, the crisis later started to affect the business. However, the war that started in Ukraine in 2022 changed the purchasing behavior of domestic consumers, and the brand had to repeatedly resort to discount campaigns.
– Nosh was a growth company when the pandemic started. Our growth was fast and we had not yet managed to develop the company’s solvency alongside the growth, comments Rannila.
During the pandemic, sales still developed positively, although the sales of clothing invitations, which are at the core of the company’s business, began to decline when face-to-face meetings were limited.
– When the events of the beginning of 2022 and the subsequent economic situation quickly changed the purchasing behavior of customers, Nosh had to offer a lot of products at discounted prices in order to cope with our financial obligations, Rannila explains the situation.
– The situation quickly led to a cycle that destroyed our margin and significantly weakened the result. The sales of our Vaatekutsu channel quickly turned into a drastic downward trend and the invitations did not go back to the way they were once the pandemic ended.
Nosh was a strong growth company when the Corona pandemic started. Nosh
Clothes are now bought used
Finns’ fashion consumption has changed radically due to, among other things, the pandemic, world political situations and inflation during the last few years.
In addition, responsibility and used second hand – fashion stores are now highlighted in consumption. Considered and responsible spending is a gratifying phenomenon in Rannila’s opinion, but at the same time eats into the fashion store’s profit. Nosh’s clientele in particular, i.e. those of working age and possibly with families, are pioneers second hand -as fashion buyers, he estimates.
– In addition to the economic situation, the change in our customers’ purchasing behavior certainly also indicates that more and more customers are responsibly buying less and with consideration, or possibly making their purchases second-hand second hand -as fashion.
Finns’ fashion consumption has changed radically in recent years for many reasons. Nosh
However, Rannila is optimistic and firmly believes that Nosh’s legend is not over yet.
– At the end of 2024, there has been a turnaround in our profitability, and we believe that our business is viable, even though our turnover has fallen to less than half of the peak year of 2021.
At Noshi, the future of the company is optimistic. Nosh
– With the positive months, last autumn our company started to consider the possibility of applying for corporate restructuring, so that we could adapt our debt, which was formed during the loss-making years, to our current viable business. This week, we submitted the disputed debt restructuring application to the court.
– Our desire is to be able to continue our meaningful work as a pioneer of responsible fashion.