Zsar outlet on the border with Russia closes after two years of operation

Outlet Center Zsar, built on the border of Finland with Russia, has not survived the crisis and is closing its doors.

The shopping center will close in less than two years after commissioning. Experts point out that the project has faced financial problems despite the complicated epidemiological situation and restrictive measures introduced.

The owner of the outlet has now started the liquidation procedure, reported the Maine Department of Patents and Registration to Finland. Under current legislation, the appointed bankruptcy manager would be able to sell the assets of the bankrupt company and pay off its creditors, writes YLE. 

To date, the total outlet debt is estimated at 190 billion euros. One of the creditors of the business is a former executive director of the company, Stephen Cunningham, who left his post in early 2020. 

Market participants report that the outlet faced financial problems even before the beginning of the crisis caused by the spread of the virus and closure of trading facilities. Even before the closing of the center for quarantine in the spring of 2020, it was empty about half of the area. After Zsar reopened in the summer, its attendance was at 50% of pre-crisis levels. 

The opening of Zsar Outlet Village on the border of Finland and Russia was held in late November 2018. The total area of the first phase of the complex was 128,000 square meters. The amount of investment in the project was estimated at 60 million euros. In 2019, the owners of the outlet announced plans to build a second phase with an area of about 88,000 square meters and placement of 45 additional tenants. Construction was expected to be completed in 2022.