The board of ONOFF Sverige AB has today, Monday 11 July 2011, submitted a bankruptcy petition to Attunda District Court. The district court has appointed Lars Eric Gustafsson, lawyer at Hamilton Advokatbyrå, as receiver.
For a number of years, the home electronics market has suffered from tough competition, price pressure and weak profitability. This situation has grown even worse recently. Given these extreme market conditions, ONOFF has come under severe pressure. In 2010, ONOFF made a loss of SEK 152 million, and these losses have continued during 2011.
For a long time, ONOFF’s owners have injected capital in order to keep the company afloat, but they now take the view that the prevailing market conditions will not improve within the foreseeable future, and that providing the company with additional capital cannot therefore be justified. The board of ONOFF thus sees no other option than to petition for the company’s bankruptcy.
ONOFF was founded in 1982, and experienced good growth up until 2007. ONOFF has 67 stores in Sweden, six in Estonia and one in Finland. The Estonian stores are operated via a subsidiary, and are not currently affected by the bankruptcy.
“Several parties have already registered their interest in buying all or parts of the chain,” says Lars Eric Gustafsson. “Until we have reached an agreement, a sale will continue with a 25-30 % discount on the entire product range in all Swedish stores.”