Customers who visited Life's e-commerce site in mid-September were met with an error message regarding technical problems in the warehouse. In reality, the cash register was empty.
On September 15, Life Stores AB was declared bankrupt. The debt to Kronofogden (Swedish Enforcement Authority) amounted to 5.8 million Swedish krona at that time, and the state's tax claims totaled over eleven million. For a retail chain with over a hundred employees, the equation became impossible to balance.
Now, the tide is turning. Jotunfjell Partners, a company that already operates retail businesses such as Best of Brands and Johnells, is taking over the company.
The game before the crash
Already a week before the Swedish company was forced to throw in the towel, investors acted and acquired the parent company Life Norden AS. The focus was placed on securing the survival of the brand in the Swedish market, and negotiations were immediately initiated with bankruptcy administrator Mikael Kubu.
We have purchased a good business that works in Norway. The bankruptcy in Sweden is solely due to previous events. It has nothing to do with our purchase," said Hans Kristian Melbye, Jotunfjell's partner, at the time to Market.
The statement from Hans Kristian Melbye highlights the contrast between the markets of the neighboring countries, where the Norwegian branch has shown a more sustainable business model.
The Swedish operation carried a heavy historical baggage. To understand the extent of the crash, we must rewind to June 11, 2025. On that day, the entire then-existing group structure was wiped out in a single day.
When costs spiraled out of control, while customers rapidly changed their purchasing habits, there was no turning back. In a domino effect, the parent company, the logistics branch, and the then-current operating company were forced into bankruptcy.
The shockwave echoed across the country, and 79 stores were thrown into complete uncertainty. From those ashes emerged Life Norden AS of Norway, which acquired the bankruptcy estate and laid the foundation for the Swedish company that now – just over a year later – has met exactly the same fate.
Now, the focus is on turning things around, which requires a major overhaul of both e-commerce logistics and the presence in stores.
Everything is on the table, and our goal is to find a solution," said Hans Kristian Melbye.