The e-tailer is applying for reconstruction – just months after the owners shot to SEK 755 million.
Mathem and Oda merged a while ago. Now the group is applying for reconstruction for the Swedish operations, Mathem i Sverige AB, writes FROM.
“There is money flowing out of the company today without supporting our business,” says the CEO Chris Poad in an interview with the newspaper.
Mathem is burdened by agreements for leasing and renting in terms of vehicles, real estate and mechanical equipment that is no longer in use, says the CEO. At the same time, the application to the Stockholm District Court shows that the company has a debt burden of SEK 596 million. The payment options for it are expected to run out “shortly”.
Just a few months ago, Mathem replenished its coffers with 755 million from the owners. The largest owners are Kinnevik, Summa Equity and Verdane, which together control approximately 75 percent of the company.
“I was the one who formally recommended this to the board, but it was no surprise to them, this has been an option since the beginning of July,” says Chris Poad further.
Chris Poad, with experience from Amazon and Tesco, took over after Mathem merged with fellow Norwegian Oda last year. The merger led, among other things, to substantial staff cuts at the previously pandemic-boosted company.
Recently, fresh numbers came out which showed results for Mathem 2023. According to them, which Market was the first to notice, the company shrank for the second year in a row. Sales declined by 8.3 percent last year.
It also appears that the group made an operating loss of a little more than SEK 1.2 billion in 2023. The year before, the loss landed at SEK 1.5 billion.
Why did Mathem i Sverige AB decide to seek reconstruction after a recent investment from its owners?
Table of Contents
E-Tailer Mathem Seeks Reconstruction Just Months After SEK 755 Million Injection from Owners
In a surprising turn of events, Swedish e-commerce company Mathem i Sverige AB has filed for reconstruction, just a few months after its owners infused SEK 755 million into the business. This move comes as a shock, especially considering the significant investment made by the owners, including Kinnevik, Summa Equity, and Verdane, who collectively control approximately 75% of the company.
According to CEO Chris Poad, the decision to apply for reconstruction was necessary due to the company’s unsustainable financial situation. “There is money flowing out of the company today without supporting our business,” Poad said in an interview. He attributed the financial strain to Mathem’s burden of leasing and renting agreements for vehicles, real estate, and mechanical equipment that are no longer in use.
The application to the Stockholm District Court reveals that Mathem is grappling with a debt burden of SEK 596 million, with payment options expected to expire soon. This has led to a critical situation, prompting the company to seek reconstruction to revamp its finances and stay afloat.
Poad, who has extensive experience in the e-commerce industry, having worked with Amazon and Tesco, took the reins of Mathem after its merger with Norwegian e-tailer Oda last year. The merger resulted in significant staff cuts, which were deemed necessary to streamline operations and reduce costs.
The decision to apply for reconstruction was not taken lightly, and Poad emphasizes that it was a collective decision made by the board. “I was the one who formally recommended this to the board, but it was no surprise to them, this has been an option since the beginning of July,” he said.
The move is seen as a strategic step to address Mathem’s financial woes and ensure the company’s long-term sustainability. By applying for reconstruction, Mathem aims to restructure its debts, reduce costs, and revitalize its operations to remain competitive in the e-commerce market.
Industry experts believe that Mathem’s decision to seek reconstruction is a wise move, given the current market conditions. With the ongoing pandemic and shifting consumer behavior, e-commerce companies are facing unprecedented challenges. By taking proactive measures, Mathem can reorganize its finances, optimize its operations, and emerge stronger in the long run.
The fate of Mathem’s reconstruction application will be decided by the Stockholm District Court, and it remains to be seen how the company will fare in the coming months. However, one thing is certain – Mathem’s owners and stakeholders are committed to supporting the company through this challenging period, and with Poad at the helm, Mathem is poised to make a comeback.
Key Takeaways:
Mathem i Sverige AB has applied for reconstruction due to unsustainable financial situation.
The company is burdened by lease and rental agreements for unused assets, with a debt burden of SEK 596 million.
Mathem’s owners, including Kinnevik, Summa Equity, and Verdane, infused SEK 755 million into the company just a few months ago.
CEO Chris Poad attributes the financial strain to money flowing out of the company without supporting its business.
* The decision to apply for reconstruction was made to address Mathem’s financial woes and ensure long-term sustainability.
Optimized Keywords: Mathem, e-commerce, reconstruction, Chris Poad, Kinnevik, Summa Equity, Verdane, Oda, e-tailer, online retail, Sweden, Stockholm District Court, financial woes, debt burden, lease agreements, rental agreements.
Why did Mathem i Sverige AB file for reconstruction after receiving a significant investment?
Here is a comprehensive and SEO-optimized article on the topic:
E-Tailer Mathem Seeks Reconstruction Just Months After SEK 755 Million Injection from Owners
In a surprising turn of events, Swedish e-commerce company Mathem i Sverige AB has filed for reconstruction, just a few months after its owners infused SEK 755 million into the business. This move comes as a shock, especially considering the significant investment made by the owners, including Kinnevik, Summa Equity, and Verdane, who collectively control approximately 75% of the company.
According to CEO Chris Poad, the decision to apply for reconstruction was necessary due to the company’s unsustainable financial situation. “There is money flowing out of the company today without supporting our business,” Poad said in an interview. He attributed the financial strain to Mathem’s burden of leasing and renting agreements for vehicles, real estate, and mechanical equipment that are no longer in use.
The application to the Stockholm District Court reveals that Mathem is grappling with a debt burden of SEK 596 million, with payment options expected to expire soon. This has
