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[Article] Teknik Magasinet file for bankrupcy - Another swedish company goes down


Jimi Wikman
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Today the Swedish company Teknik Magasinet filed for bankruptcy after failing their reconstruction. It is one of several Swedish companies that have failed recently and many other are struggling at the moment. With tougher competition, changes in peoples buying habits as well as more expensive rent I think we will see more brick and mortar based companies fold in 2020.

After a few rough years for Teknik Magasinet and with a reconstruction started in the summer of  2019 they finally gave up the struggle and filed for bankruptcy. The company that started in 1989 have had a tough time adjusting to the new times, just like many other older companies. They did a push for E-commerce and had some success in 2018, but lower number of customers in the physical stores and raising rents did nothing to help the difficult situation.

Quote

Retail trade has been affected by continued falling sales and rising rents, while a weakened Swedish krona has increased commodity purchases from abroad, so despite extraordinary efforts by a new company management, it has not been possible to achieve profitability, the company writes in a press release.

While Teknik Magasinet has filed for bankruptcy on January 15th they have looked into the possibility to have someone else take over the business. So far no one has stepped forward, but there is still hope that TeknikMagasinet will survive in one for or the other.

Quote

We have negotiated with players who have been interested in a takeover, but there has been no interest in taking over the business while it is in the process of reconstruction. They want to complete such a negotiation with a bankruptcy trustee, says Carl Östring, Teknikmagasinet's business adviser, to Di.

As sad as this is it does not come as a surprise. We see many companies struggle with making ends meet these days. It is easy to blame the death of old companies on the rise of E-commerce, but there is more to it than that. That is a topic for another time however and for now we say goodbye to Teknik Magasinet and thank them and all their employees for the services these last 30 years.


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