Esportal Group, which manages the Esports matchmaking platform and Inferno Online, Sweden's largest LAN centre chain with locations in Stockholm, Malmö, and Gothenburg, has filed for bankruptcy.
On July 24th, 2024, the company submitted its bankruptcy petition to the Stockholm District Court after failing to secure the necessary financing to sustain operations.
In a statement on their website, the board explained, “The required financing for ongoing transformation could not be secured, leading to a situation where the group will soon lack the means to cover its immediate working capital needs. The company’s overall debt has been deemed unsustainable in the long term, placing the group in a state of insolvency that is not expected to be temporary.”
The company had previously sought funding through various new issues and loans from major private investors. In 2023, they also received a deferral on taxes from the Swedish Tax Agency due to the pandemic. Despite efforts to reduce costs, explore new revenue streams, and negotiate restructuring deals, the group struggled to overcome financial difficulties, including a loss of 42.1 million SEK ($3.9 million) two years ago.
The press release did not address the future of Esportal and Inferno Online during the bankruptcy proceedings.
CEO Magnus Granqvist also declined to comment but expressed hope that the companies might continue under new management.