Brödernas Applies for Company Restructuring Amid Financial Challenges

Brödernas Group AB, a prominent restaurant chain in Sweden, has initiated a company restructuring process to ensure its long-term financial stability. Despite these internal changes, its restaurants will continue operations as usual. The initiative, submitted to the district court, follows financial difficulties brought on by the pandemic, inflation, increased interest rates, and rising rental costs.

The group, which operates around 70 restaurants nationwide with about 500 employees, has faced substantial rent hikes, averaging 18% over two years. Additionally, increased reliance on third-party delivery services has affected profit margins. Despite efforts like renegotiating supplier contracts and reducing unprofitable locations, financial pressures have persisted.

Brödernas has also shared tentative financial forecasts for the coming years, projecting a turnover of SEK 542 million in 2024 with a negative EBITDA of SEK 26 million. Improvement is expected by 2025, with a predicted turnover of SEK 563 million and EBITDA of SEK 7 million.