Hamilton News

ONOFF in bankruptcy, with Hamilton Advokatbyrå as receiver

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.”