The acclaimed brand Dellenkilten, which has sold kilts rooted in the Hälsingland costume culture via the internet and a local store, has gone bankrupt. The company behind the venture, Dellenkilten of Helsingland AB, was declared bankrupt at Sundsvall District Court following its own application.
The concept was started by founder Mikael Öst with the ambition of combining Scottish kilt tradition with local cultural history from the Dellenbygden region. The venture reached far beyond its home area, found a place at the Nordic Museum, and resulted in three officially registered patterns with The Scottish Register of Tartans: Dellen, Grim, and Northman.
The idea was born when Mikael Öst, who normally worked as a carpenter, bought a cheap kilt on a trip to Scotland and wore it to the Delsbostämman festival. The response was so great that he sat down at his computer for four months to design his own tartan based on the colors of the region's folk costumes.
Because the costume traditions were strong and sometimes conservative, he chose to name the pattern after the Dellen lakes to create an inclusive garment that everyone could wear.
All kilts were made to measure and woven from pure wool at mills in Scotland, before being carefully inspected at home in Hälsingland and shipped to e-commerce customers across the country.
“A Unique Story”
Sales have been driven through the company's own physical store and e-commerce sites dellenkilten.se and northmankilt.com, which remain active.
On social media, the news of the bankruptcy is met with a strong wave of support from customers and followers, where the founder thanks everyone for the years gone by:
My passion, and what has been the foundation of this quirky story, is my love for Dellenbygden and my Hälsingland. Dellenkilten is an unlikely and unique story. An idea that took flight, soared, and found its way to both the Nordic Museum and the Swedish Church in Dellenbygden. It has been a talking point, turned the costume culture and tradition upside down.
In his message, he also emphasizes that placed orders will be delivered to customers despite the business now ceasing in its current form.
Declining Revenue and Shrinking Cash Flow
The background to the bankruptcy is a prolonged period of declining sales and lack of liquidity.
The company's recently submitted annual report shows that net turnover fell sharply after the peak years around 2023, when the company approached SEK 1 million in revenue.
During the latest financial year, turnover amounted to just over SEK 400,000, while profit after financial items landed at minus SEK 119,000. The losses meant that equity became negative at the turn of the year and cash flow shrank to under SEK 30,000.
Documents from the Swedish Enforcement Agency and the Swedish Companies Registration Office show that the company has had minor debts to the tax account and temporary tax deferrals from the pandemic.
When revenue no longer covered costs, the board of directors chose to throw in the towel.
It feels a little sad, but I also feel proud to have contributed to the cultural heritage, says Mikael Öst, the company's founder and CEO, to HT.