EU Retailer Sneakersnstuff Has Filed for Bankruptcy
PublishedQuick Facts
- SNS's parent company has filed for bankruptcy in Sweden
- The company last reported it was operating at a loss of approx. $2.7 million in 2023
- While the bankruptcy may make it seem as if they are shutting down operations, this is more a restructuring of its finances.
- The online storefront and physical locations in London, Paris, and Berlin will continue to operate for the time being.
After 26 years in business, Swedish-based sneaker boutique Sneakersnstuff (SNS), one of Europe's premier sneaker retailers that often collaborates with adidas and New Balance, has officially filed for bankruptcy. This news comes just a week after the retail chain shut down its storefronts in the US and Japan.
According to Ehandel, the Swedish outlet that first reported news of SNS’s bankruptcy filing in 2018, venture capital firm FSN Capital purchased a 60% stake in SNS’s parent company. The investment doesn’t seem to have panned out as they would have hoped, as in 2023, the retailer began operating at a loss, going from a profit of SEK 7.5 million (approx. $680,672) to losing SEK 30.6 million (approx. $2,776,809).
Reasonings behind this massive drop-off were attributed to multiple factors, according to a financial report obtained by Ehandel. SNS stated in these documents, “In addition to the discontinued collaboration between Adidas and Yeezy from Q4 2022, the sales development of the largest brands, with a few exceptions, has been sharply negative. The most important category of products has also been negatively affected by changing customer behavior. The company has taken major measures to reduce costs.”
The company continued, “The clothing and footwear market has been heavily impacted by external factors such as high inflation, rising interest rates, and geopolitical unrest in recent years. Sneakersnstuff has not been spared, with sales and earnings declining like much of the industry.”
For now, SNS still operates its online storefront and physical locations in London, Berlin, and Paris. While the news of bankruptcy may make it seem like this is the end of SNS, Peter Jansson, co-founder of SNS, stated in an Instagram post hours after the news hit the internet:
Erik Manzano Fagerlind, SNS’ other co-founder, stated, "For me personally, the bankruptcy means the end of a fairly lengthy process that has been going on for a couple of years. I have already lived through this grief and am looking forward now. But I suffer with everyone who works at and with SNS around the world.” It’s important to note that Fagerlind, while still a partner in the business, is no longer with the company and stepped down from the CEO role three years ago.
This marks yet another retailer hit by the decline in the sneaker market, as we’ve seen an array of retail and resale shops shutter their doors or significantly reduce their operations over the last two years. Previously, retailers like YCMC, Eastbay, Hanon, wellgosh, and Prosper have ceased operations, with others like atmos exiting the US market.
This bankruptcy filing does not mean the business is shutting down operations. Essentially, SNS is looking to restructure its finances and for new investors to help navigate and fund the company as it develops a new business strategy.
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Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
