After the Swedish Footway Group AB filed for voluntary company reorganization in July, the company submitted a preliminary reorganization plan to its creditors at the beginning of November. The plan includes a proposal for debt relief of approximately 70 million Swedish kroner (€6.02m) and a new share issue of the same amount, including the conversion of a convertible loan of SEK 20 million (€1.72m).
The plan outlines some of the steps the company has taken to address the financial challenges. In close collaboration with its stakeholders and under the leadership of restructuring expert Nils Åberg, Footway has worked on measures that position the company for a stronger, more cost-efficient future, with a focus on innovation, customer satisfaction and sustainability.
The following operational efficiency measures are being implemented:
- Centralization of warehouses. Centralization will enable a more efficient organization and lead to significant cost savings, estimated at approximately SEK 30 million (€2.58m) per year.
- Local shipping and returns agreements: The introduction of local shipping and returns solutions will lead to significant cost savings by 2024.
- Footway+ for external e-commerce customers. The company is opening its platform in 24 markets to external e-retailers who are not part of the Footway Group.
- Organizational changes. The company has streamlined its processes using AI technology, saving 22 jobs.
- Cost-saving programs. Savings of approximately SEK 4 million (€344k) per year are expected through general cost reductions and AI efficiency.
“Our reorganization plan is the result of our efforts to reposition the Footway Group in the best possible way under the current circumstances. We are very grateful for the support and trust that our partners, customers and colleagues have shown us during this time. We look to the future with hope and are committed to continuing to create value for all stakeholders,” commented Daniel Mühlbach, CEO.
