Primehotels, operating Hotelli Rantapuisto in Helsinki's Vuosaari, Spahotel Casino in Savonlinna, and Hotel Oscar in Varkaus, was declared bankrupt on Wednesday, according to the company. The company stated operations will continue, but staff of 100 have been laid off as part of the process, Ilta-Sanomat reported. CEO Eero Nuutinen said corporate restructuring since autumn 2024 failed due to a weakened market. Gift cards are invalid, accommodation must be paid in full, and prepayments are non-refundable, the company said. Claims can be made to the bankruptcy estate.
Separately, Helsinki-based construction company Terrawise is filing for corporate restructuring, the company announced. The application was submitted to the Helsinki District Court on Wednesday. Terrawise specializes in civil and infrastructure construction in Uusimaa and Pirkanmaa. Financial challenges arose from loss-making infrastructure projects in the Helsinki area, which have been completed and the business divested to Nyab Finland, according to the company. According to Asiakastieto, Terrawise's 2024 revenue was 56.2 million euros with an operating loss of 3.3 million euros. Business continues normally during restructuring, the company said.
The company's financial challenges have arisen from several infrastructure projects in the Helsinki metropolitan area that have become significantly loss-making. These projects have now been completed and the company has divested its Helsinki metropolitan area infrastructure business.
In Kuhmo, Hotelli Kainuu has filed for bankruptcy, the company confirmed. The family business, operating since 1971 with 29 rooms, has had negative annual results for years. Owner Pirjo Kähkönen cited expenses exceeding income and a challenging location. The hotel and restaurant industry slump has hit hardest outside major tourism centers, according to industry observers.