After years of economic challenges, Danske Bank withdraws its support for reconstruction, making it impossible for eCom Teams to continue to operate.
The e-retailer eCom Teams, previously Footway, has decided to file for bankruptcy. The company was once one of Europe’s biggest sneaker retailers, with a turnover of SEK 1,5 billion (€150m) in 2021. However, the company has been plagued by economic troubles for the last five years and went into reorganization as Footway as late as April 2024, after reporting a growing negative result of SEK 253 million (€25.3m) in FY 2023.
The plan this time was to file anew for corporate reorganization, the decision having been made after a talk with Danske Bank to find a sustainable solution for eCom’s debt. According eCom Teams, Danske Bank last Friday withdrew its support, obliging eCom Teams to file for bankruptcy.
eCom Teams has further said that Danske Bank breached a financing agreement entered into by taking SEK 52 million (€5.2m) from the company’s account in November 2024 without returning the corresponding corporate mortgage. This prevented a planned refinancing and caused serious consequences for operations. Product purchases were stopped during the most important sales period of the year (Q4 2024), and purchases for future seasons were suspended. The damage, in terms of total losses, is estimated at SEK 100 to 150 million (€10 to 15 million).
Indemnification process against Danske Bank
eCom Teams believes there are obvious reasons to pursue a claim for damages against Danske Bank, in order to obtain compensation for the damages caused by the bank’s actions. Such a claim has previously been transferred to another party, with the possibility of some recovery. Litigium Capital, the company has now been informed, has been engaged to pursue the matter. A complaint against Danske Bank is also being prepared before the Swedish Financial Supervisory Authority.
View of the management and board
“Even if we are now forced into bankruptcy, I will continue to work hard to ensure that the business of eCom Teams and its employees have the best possible conditions for continued operation: The business is profitable. The fact that we have ended up in the situation we are now in has strictly financial reasons. There is great value in the combined business and very good opportunities to rebuild a strong position in the e-commerce market,” says Daniel Mühlbach, CEO and founder.
“We have always strived to create a sustainable and growing company, but unfortunately we have now reached the end of the road. It is extremely sad for all of us, but we are grateful for the support we have received from our other creditors and our great team who have been with us on the journey,” says Louise Liljedahl, COO and co-founder.
The application will be submitted to Solna District Court on April 7. The decision is a result of Danske Bank’s withdrawal of support for the reorganization that was previously subject to dialogue and cooperation. The application does not apply to the Footway brand or the Footway OaaS AB platform.
