A popular Swedish e-commerce company selling garden furniture and accessories, known for its high-profile marketing success with appearances in media like the Kardashians and the Barbie movie, has entered financial reconstruction due to significant debt.
The Gothenburg District Court documents reveal that the company, Garden Glory, cannot meet its current financial obligations, with concerns that it may soon be unable to do so.
Photo: Dreamstime.
Despite the U.S. being Garden Glory's largest market, the company's financial troubles stem from increasing costs and declining revenues. Manufacturing in Sweden and maintaining warehouses in both the U.S. and Australia have added to the financial strain. Sales during the summer fell 38% below budget, exacerbating the company's liquidity issues.
Garden Glory now owes SEK 4 million to priority creditors and over SEK 1 million to the Swedish Tax Agency. However, the company still holds assets, including SEK 600,000 in accounts receivable and nearly SEK 17 million in inventory.
While in reconstruction, Garden Glory plans to continue its operations as usual, aiming for a turnaround.
Source: www.ehandel.se