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From: Martin Nilsson
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Thousands of companies have gone bankrupt since the beginning of the pandemic.
Some companies have resurfaced, while others have had to close.
– It’s an incredibly sad decision, says Thomas Gustafsson, vice president of Mellby Gård, owner of the bankrupt clothing chain Flash.
The Mellby Gård company saw from the beginning that something was happening in China. The virus outbreak on the other side of the world raised concerns that the company would no longer receive products from factories in Asia.
– We saw the pandemic hit at the beginning of the year. Before that, our new management had started a good turnaround for the company. Then the pandemic came and took its toll, says Thomas Gustafsson, vice president of Mellby Gård, owner of the classic Flash and Dea Axelsson clothing chains.
Photo: Linus Morales
Thomas Gustafsson, Deputy Executive Director of Mellby Gård,
The company had been in trouble since before and it all became really remarkable in 2018. By the fall of 2019, the results had turned into a sharp deficit.
Then the corona pandemic came on the scene and demand dropped.
March 23 began with what was thought to be the end of the company. Then the board decided to bankrupt the owner company Lund Fashion, which included Flash and Dea Axelsson.
Almost a hundred stores in Sweden were affected and several hundred full and part-time employees were affected.
– It’s an incredibly sad decision. Many talented employees who have lost their jobs, says Thomas Gustafsson.
But the bankruptcy did not end. In October, the Flash and Dea Axelsson brands were acquired by Kappahl, which is also owned by Mellby Gård.
However, those who have worked in the Lund Fashion offices and stores will not get their jobs back.
– No. Kappahl acquired the brands, and then did not follow any personnel, says Thomas Gustafsson.
– The most important thing now is for the pandemic to pass, which I don’t think will happen until the second half of 2021.
Photo: PRESS IMAGE
Charlotte Holmbergh Jacobsson, Norwegian Communications Director.
“I hope I can use again”
But it’s not just the garment industry that has been affected. According to Statistics Sweden, 4,844 public limited companies went bankrupt between February and October this year, compared to 4,753 last year.
One of the companies affected was the aviation giant Norwegian, which went bankrupt on April 21 for four subsidiaries.
Norwegian had to cancel a large number of flights after the announcement that the Norwegian government would not provide the company with further financial support.
“We are now doing everything we can to overcome this crisis and look forward to an understanding from our customers who are affected,” then-communications manager Charlotte Holmbergh Jacobsson told Aftonbladet.
Prior to the bankruptcy filings, Norwegian had laid off thousands of employees and Arlanda staff had been notified of the layoff.
The bankruptcy affected both pilots and cabin crew in several countries.
Charlotte Holmbergh Jacobsson writes in an email:
“This pandemic has hit the travel industry very hard and the prevailing uncertainty makes it very difficult for travelers and tour operators to plan because travel restrictions can change quickly.”
Last year, Norwegian had 10,000 employees around the world. Now there are only 600 left.
“We look forward to re-employing as many of our experienced pilots and cabin crew as possible, but when and to what extent, we cannot provide an answer today,” writes Charlotte Holmbergh Jacobsson.
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