It has been claimed that Swedish smartwatch manufacturer Kronaby has filed for bankruptcy in its home nation of Sweden. If the company is unable to attract new investors in the near future, approximately sixty people could lose their jobs at the company’s offices in Malmo.
A little over three years ago, four executives from Sony Mobile established Kronaby as a separate company. Soon after that, the firm unveiled its very first hybrid vehicle.
Its Sekel, Apex, Nord, and Carat lines collectively have a total of nine women’s watches and fifty men’s timepieces at the present time. The watches are a fusion of traditional Swiss watchmaking techniques with modern digital engineering. They feature a design inspired by Scandinavian aesthetics. When connected to a smartphone, the watches provide a one-of-a-kind feature set in addition to an impressively long battery life that spans multiple years.
Revenue rose to $50 million in the most recent year, up from $37 million in 2017, when the firm reported a loss of $127 million. However, despite the company’s excellent financial success, the primary owner Goertek has decided to withdraw their support for Anima, which is responsible for the sales of Kronaby branded products. The Chinese organization announced that it would withdraw from the industry in order to concentrate on its primary activity, which is the production of electronic goods.
Pal Borge, the CEO of Anima, was quoted in the Swedish daily The Local as saying, “They decided to quit this branding industry, and they also decided to do so extremely rapidly,” which means that they stopped all financial infusion and support with immediate effect.
They took this action in December, which meant that they gave us only one and a half months to locate new investors, which was an extremely inadequate amount of time. We have a number of leads that we will continue to work on, but so far we have not been successful in finalizing them.”
Kronaby intended to achieve financial stability by the end of this year and was actively seeking an additional capital injection of several million dollars in order to accomplish so. They are going to need to raise additional funds in order to continue operating normally. In the meanwhile, the company is working hard to ensure that its operations continue as normal.
Borge was quoted in the newspaper as saying that “we have a platform ready and a business which should attract many,” and that “our objective is, together with the administrator, to find a solution.”