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Electronic chain Expert, Swedish branch retailer goes bankrupt

Tuesday, 18 September 2012
Electronics Chain, Expert, failed to stop its recent losses to persist as such it has finally filed for bankruptcy. All activities in Sweden are thus closed down and at least 817 people will lose their jobs.

On Tuesday, Expert Sweden AB, will be closing down 136 stores around the country, as it submitted its application for bankruptcy to Linköping District Court. Expert Group's Board of Directors says it has decided to immediately close down its Swedish business.

The bankruptcy filing follows that Expert Sweden AB is insolvent and unable to pay its debts.
"Expert in Sweden has for many years been making losses, we laid a plan to save the company and we have made a wholehearted and honest effort to try to reverse the trend. We have worked 120 percent on the basis that we could do it here, "Expert Swedish CEO Magne Solberg said.

But despite the rescue attempts and cost savings the losses continued and the situation has become untenable.
"The general economic climate and outlook for the future, combined with the current competitive situation, has forced the Board to make the decision to close down the Swedish operations, "said Magne Solberg.

In total, 817 full-and part-time employees in the Expert's headquarters and in the 73 stores owned will be let to go.
"It 's very sad for our employees, customers and franchisees. Sorry that we have come to this decision, and will try to finish our relationship in the best way possible, "says Magne Solberg.

Just over a year ago, the electronics chain Onoff went bankrupt, explaining how tough the Swedish electronic retail market has become.

Analyst at Swedish Retail Institute, are not surprised that another company in the consumer electronics industry has been forced to throw in the towel.
"It's a race to the bottom in an industry where no one makes money. Perhaps it is that these stores disappearance contributes to make the market in some sort of balance," an analyst said.

The general consensus is that some key consumer electronics are very expensive in Sweden and with the emergence of electronics trade, consumers can order on line from far away market such as Germany, the UK where they are slightly cheaper thus undercutting home retailers.
By Scancomark.com team

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