Esportal announces bankruptcy filing
This morning, news out of Sweden will make some nostalgic fans despondent. Esportal Group, which operates the matchmaking platform Esports and Inferno Online, the latter of which is Sweden's biggest chain of LAN centers, has filed for bankruptcy. The company operates these LAN centers in Stockholm, Mälmo, and Gothenburg.
As of July 24th, 2024, the company filed for bankruptcy in the Stockholm District Court as the board could not find the financing necessary to continue operations.
"The board can ascertain that the necessary financing to continue the transformation cannot be secured, which means that within a short time the group will not have coverage for its short-term working capital needs, while at the same time the company's total debt side is assessed as long-term unsustainable - and therefore the group as a whole is in an insolvency situation that is not assessed as temporary," said the press release on the company website.
"Over the years, financing has taken place through several new issues and loans from major private shareholders. The group also received a so-called corona postponement from the Swedish Tax Agency in 2023. Since the beginning of last year, the group has implemented several cost-saving programs, realized new revenue streams, negotiated potential structure agreements and secured a good order book going forward."
The bankruptcy comes two years after the company also lost $42.1 million SEK ($3.9 million USD).
The press release did not provide details about the future of the platform as the company navigates the bankruptcy process.
In comments made to Dust2.us affiliate Dust2 Sweden, Chairman of the Board Stefan Magnusson did not want to speculate on the company's future. In regards to questions over whether the operations of Esportal and Inferno Online can continue he stated, "I can't speculate on that, it's simply a matter for the bankruptcy trustee."
Company CEO, Magnus Granqvist, also did not answer questions but believes that it may be possible for the companies to continue under new leadership.
