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.