Mathem Faces Financial Distress: Seeking Reconstruction

Monday, 16 September 2024, 03:20

Mathem, a prominent player in the tech startup arena, is actively seeking reconstruction as financial woes plague the business. The concerns of dwindling capital have reached a critical point, compelling Mathem to turn to the courts for support. CEO Chris Poad highlights the urgent need for intervention, emphasizing the company's unsustainable contracts and escalating debts.
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Mathem Faces Financial Distress: Seeking Reconstruction

Mathem's Financial Troubles

Mathem and Oda recently joined forces, but now the company is filing for reconstruction due to severe financial challenges. CEO Chris Poad stated, 'It's money that is running out of the business today without supporting our operations.' Mathem is struggling with leasing contracts for vehicles and equipment that are no longer in use.

Urgent Court Intervention

The firm is appealing to the Stockholm District Court, indicating liabilities totaling 596 million kronor. Payment capabilities are expected to be exhausted 'soon.' Just months ago, Mathem raised 755 million kronor from its investors, including major stakeholders Kinnevik, Summa Equity, and Verdane, who collectively control approximately 75% of the company.

Challenges After Merger

Chris Poad, who has a background with Amazon and Tesco, took over after Mathem’s merger with Norwegian counterpart Oda last year. This merger led to significant layoffs in a company that previously thrived during the pandemic.

Declining Sales

Recent figures show Mathem's continued struggle, with sales dropping 8.3% last year. Notably, the group incurred an operating loss exceeding 1.2 billion kronor in 2023, compared to a 1.5 billion kronor loss in the previous year.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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