Heavy debt forces 129-year-old F-Musiikki into corporate restructuring
The long-established music retailer says rising online competition has left it with an unsustainable debt burden.
F-Musiikki, Finland's oldest music retailer, has submitted an application for corporate restructuring after enduring years of financial challenges. The company, which imports and sells instruments, sheet music, audio gear and accessories, filed its petition with a district court last week. CEO Rami Alanko explained the company's struggles have persisted for years, primarily due to fierce international competition from online stores.
Particularly, German retailer Thomann has significantly captured market share, making it difficult for F-Musiikki to keep up. Alanko and his business partner took over the business at the end of 2024, initiating a comprehensive business overhaul. This included closing stores in Turku, Oulu, and Kuopio, revamping their online platform, and outsourcing their warehouse operations.
Their current physical store is situated in Pakkala, Vantaa. Alanko, also a member of the Finnish pop band Neon 2, emphasized that the company remains financially stable despite the restructuring application. He stated that the decision to apply for debt restructuring was not made easily, but it was deemed the responsible course of action.
The restructuring is not anticipated to impact the company's approximately 40 employees, though the workforce has already been reduced by half in recent years. Established in 1897, F-Musiikki is one of the longest-standing music retailers in Finland. Alanko expressed that the company aims to preserve this historic brand and ensure its existence for another century.
He noted that the reduction in debt will enable the company to build upon the reforms already implemented and secure its long-term prosperity.
Written by urgent.news from Yle News Finland's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
