Swedish e-commerce company Footway, with Rutger Arnhult as majority owner, was founded in 2010. Footway operates online stores in several different countries, Sweden, Norway, Great Britain, Germany and France. In total, there are 12 e-commerce stores.
They announced in a press release on Tuesday that they have applied for corporate restructuring. This sent the stock down 30 percent on the Stockholm Stock Exchange by 3 p.m.
According to the company itself, the difficult circumstances that the sports business has faced in both Sweden and Norway in recent months, which is the basis for the decision on the restructuring of the company.
“Since the beginning of the year, we have begun to operate more traditionally with procurement processes, which has resulted in a better focus on our working capital and reduced inventory linkage. Unfortunately, we incurred some double logistical costs while building our own warehouse in Eskilstuna,” CEO Daniel Mühlbach says in a press release and continues:
“We are in the final stages of moving the entire logistics operation to our own warehouse and we expect it to be fully ready in January 2024. Then we will see a significant reduction in warehouse and transportation costs.”
CEO: “It’s very unfortunate.”
In mid-July, Footway recorded net sales of 240 million during the second quarter of the year, which is down from the same period last year. To strengthen the financial position, a new issue of SEK 100 million was prepared, which E-Commerce I previously wrote about. The new issue means that the company offers new or existing shareholders to subscribe for new shares in the company in order to increase the capital. The idea when preparing the new version was that it would be completed during the third quarter.
“I find it extremely unfortunate that we have ended up in this situation and I know this will impact our suppliers and partners who have helped and supported us through these difficult months,” CEO Daniel Muhlbach says in the press release.
“I aspire to lead the company through its reconstruction and emerge as a strong and viable partner in the future.”
The idea is that e-commerce should take place as normal during the reconstruction period.
The Footway Group sells more than 300 brands and 20,000 shoes through its website.
GP applied to Footway Group.
Also read: Sports giant Sportshopen is in financial crisis
Also read: After bankruptcy: the shop in Ostra Hammingtan is now closed
Also read: Here, Gothenburg’s shop buildings are empty – this happens to them later
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