[UPDATED] Baltic cruise and ferry operator AS Tallink Grupp has sold 100% of its shares in wholly owned subsidiary Baltic Retail OÜ to Tallinn-based Talwest Grupp OÜ.

The terms of the transaction were not disclosed due to ‘confidentiality’.

Baltic Retail OÜ owned the franchise rights of five fashion brands (Esprit, Vero Moda, Jack & Jones, SuperDry and United Colors of Benetton) and operated eight retail stores in shopping centres in Tallinn.

By disposing of its shareholding, Tallink will relinquish a presence in Estonia’s fashion and retail business built over several years.

FOCUSING ON CORE BUSINESS; ONLINE GROWTH

In a statement, the Estonian firm stressed the need to ‘refocus activities’ around onboard operations and maritime transport after the Covid-19 outbreak, temporary closures of shopping centres as a result of lockdowns and ‘considerable pressure’ on the core business.

The company will continue to operate smaller onshore travel retail outlets, the essential goods shop Tallink Express in Tallinn, and continue rolling out Burger King restaurants in the Baltics, AS Tallink Grupp said in a statement.

In a statement obtained by TRBusiness, Aimar Pärna, Head of Tallink Duty Free, said: “Baltic Retail and the expansion into the onshore fashion retail market made perfect sense a few years ago, before the pandemic and building on our decades of experience with travel and fashion retail on board.

“We have extensive knowledge, strong partnerships with global brands and, pre-pandemic, great ideas and plans for growth and expansion on shore. However, right now, we must readjust our plans and refocus.

“Our sights are currently firmly set on securing and strengthening our core business and onboard operations, as well as on the growth and expansion of our online retail presence.

“In the current world and new shopping habits where online has come to dominate, this is where our energy and efforts should be directed in the short to medium term.”

The Group’s statement, delivered to the stock exchange where its shares are listed with Nasdaq Tallinn (and with Nasdaq Helsinki) added: “Disposal of the subsidiary cannot be interpreted as disposal of a major holding for the purposes of the Nasdaq Tallinn rules and regulations chapter requirements for issuers and does not have a significant impact on the activities of the Group.

“The members of the Supervisory Board and Management Board of Tallink Grupp AS have no other personal interest in the transaction.”

Pre-pandemic, AS Tallink Grupp revealed that international airport shops were on its expansion radar and it would consider future bid opportunities.

For more on AS Tallink Grupp, watch out for the TRBusiness September e-zine.