It looked bleak for Parym.se. After a failed deal and tough delivery challenges, it finally came to a halt in early September. But now the story is getting a new chapter.
It is the Norwegian group Jotunfjell Partners who is stepping in as the new owner and breathing life back into the business. The same group recently acted as a rescuer when the health chain Life went bankrupt.
The road to bankruptcy was fraught with obstacles. It all started when a planned merger with Bangerhead fell through, delaying a crucial financial rescue plan. At the same time, the company was pressured by tough price competition and price-conscious customers who chose cheaper alternatives. To turn things around, a physical store was opened while the company tightened its belt on costs.
In the latest annual report, there was still hope from management:
Following completed refinancing and cost-saving packages, the board of directors assesses that the conditions for continued operation still exist.
Figures that sank the companies
But hope wasn't enough when the money ran out. The parent company Parfym Sverige AB had a turnover of 252.3 million Swedish krona during its last broken financial year, which was a decrease of 9 percent. Operating profit plummeted and landed at minus 14.9 million Swedish krona.
At the same time, the subsidiary Fume AB, which runs a hair salon, struggled. They had a turnover of 1.4 million Swedish krona, which was an increase of 8 percent. Their operating profit was minus 263,473 Swedish krona. The parent company, in turn, landed on a turnover of 4.3 million Swedish krona with an operating profit of 385,000 Swedish krona.
The Norwegian rescuer
Now, Jotunfjell Partners is taking over. The investment company is becoming a seasoned buyer of Swedish brands in crisis. When they recently took over Life, part-owner Hans Kristian Melbye explained the strategy behind their investments:
We have bought 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.
Although that statement applied to another deal, it shows how the group is looking for functioning core businesses in crashed companies. How they will exactly turn around the beauty store's trend has not been determined. But when they took over their previous struggling chain, the message was clear about how they view future solutions:
Everything is on the table, and our goal is to find a solution.