To understand the bankruptcy, it is relevant to look back at the company's development. During the pandemic, sales soared and 2021 became a record year for the company. Turnover then exceeded 61 million Swedish kronor and, for the first time, the company reported a positive operating profit. However, the market then turned for the e-commerce retailer. Already in 2023, turnover had fallen to just over 41 million Swedish kronor and losses returned as purchasing power slowed down. Customers began choosing cheaper goods and sales of more expensive greenhouses decreased. The company was also approached by interested parties for a potential acquisition, but that process ended in the autumn of 2023 without an agreement being reached.
Falling turnover and liquidity crisis
Now, the company's latest annual report for 2025 is available, which provides a more in-depth picture of the financial challenges that preceded the bankruptcy. Last year, net turnover fell further to 27.6 million Swedish kronor, compared to 32.8 million Swedish kronor the year before. At the same time, a result after financial items of minus 1.9 million Swedish kronor was reported, and the net profit for the year amounted to -1.5 million Swedish kronor. The management report states that during the year, operations focused on stabilizing turnover within core business and improving profitability through cost reductions, process efficiency and optimization of range and margins.
The decreased sales significantly affected the company's cash flow. In the annual report, management describes the strained situation at the end of last year with the following words:
The company's liquidity has been tight during the last quarter of the year and dialogue with suppliers has been ongoing and payment plans have been established to manage working capital needs.
Rescue attempts were not enough
To manage the acute crisis and strengthen liquidity, contributions were made by the owners as bridging finance for a future new issue. The company also took other measures, such as renegotiating the premises rent with a reduction of 50 percent from October 2025. It also received amortization relief from its creditors and worked to reduce capital tied up in inventory.
When the annual report was signed at the end of April 2026, the board of directors still assessed that there were conditions for the company to continue operating. They had then drawn up a budget for 2026 showing a projected positive result and cash flow, whereupon the annual report was prepared with the assumption of continued operations. However, these rescue attempts and cost savings ultimately did not go far enough. According to Länstidningen Södertälje, which was in contact with the founder the day after the bankruptcy decision, the company ended up in a vicious cycle where debts grew and liquidity became too weak.
It's terribly difficult, Lena Ljungquist told the newspaper.