Other reasons why an application for company restructuring has now been submitted to Örebro District Court are to do with consequences due to the war in Ukraine, such as increased energy prices and rents.
- After evaluating various alternatives, we have decided to carry out a reconstruction process to deal with the parts of the business that have profitability challenges, says Pontus Gustafsson, chairman of the board and founder of We Are Padel in a press release.
"The situation is challenging"
The company further states that discussions with landlords and other interested parties are now starting.
- Our picture is that the situation is challenging for many companies in padel in Sweden.
The market needs to restore the right balance between supply and demand, and the players who remain active in the market must be able to run profitable businesses and be able to make investments for the sport to grow.
According to the press release, the intention of the reconstruction is to identify businesses with "profitability challenges".
- We cannot rule out that businesses and employees will be affected, but exactly how it is too early to say, says Pontus Gustafsson.