The Electrolux Home chain has suffered another blow with its Varberg store filing for bankruptcy, marking the third collapse within the franchise network this year. The store, operated by Köksplanering i Väst AB, submitted its application to Varberg District Court after what owner Magnus Kallberg described as an "unsustainable" situation.
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Kallberg cited weakened consumer spending and a stagnant construction market as key factors. 'Private consumers have become more cautious about investing in new kitchens, while our project operations have been greatly affected by the stagnant construction market,' he told Hallands Nyheter. Despite the filing, he expressed hope that the store could continue in some form.
The bankruptcy follows similar closures earlier in 2025. In July, Limont Köksmiljö AB, which operated the Sickla shopping centre branch, went bankrupt, while Köksbutiken i Piteå AB collapsed in the spring after years of financial strain.
The downturn comes just a year after Electrolux Home unveiled ambitious plans for expansion in 2025, which have since been shelved. The chain's struggles highlight the mounting pressure on retailers in Sweden's home and kitchen market as economic uncertainty and weak demand continue to erode profitability.
Source: www.ehandel.se
