Convendum Stockholm has today filed for corporate reorganization at the Stockholm District Court to address the financial strain caused by steep rent increases. The goal of this measure is to safeguard the company’s operations and build a more stable financial foundation.
Rent Increases a Decisive Factor
– The sharp rent increases have created an unsustainable situation for us and many others in the industry. Through reorganization we can secure the business and create a long-term sustainable economy, says Håkan Jeppsson, CEO of Convendum.
Despite the reorganization, Convendum’s customers will not be affected. All contracts remain in force, and the company’s coworking and office spaces will remain fully available without interruption.
Convendum’s Strong Business Model and Market Position
Convendum has a stable business model and an important role in the office market, serving over 1,000 corporate customers with revenue exceeding half a billion SEK. The company offers flexible, modern office solutions that include coworking, small and large private offices, lounges and conference facilities, making it a well-regarded player in the sector.
Since 2021, Convendum has pursued an ambitious expansion plan that has doubled both leasable space and revenues. Despite this growth, rent increases of 18.1 percent over the past two years have squeezed margins from around 15 percent down to negative levels. The company has so far been able to meet its financial obligations but risks losing that ability in the near term.
Focus on Negotiations and Sustainable Growth
– Our ambition is not only to navigate this difficult period but to strengthen our position and become more competitive. It is essential to reduce these unsustainable rent levels while also increasing sales. We look forward to a constructive dialogue with our landlords to ensure long-term sustainability, says Jeppsson.
The company has already taken several actions, including receiving financial support from the parent company to bolster liquidity and implementing cost efficiencies. Convendum has no tax debts and is actively working to stabilize its operations.
The Restructuring Trustee’s View of Convendum’s Future
Jakob Callmander, the proposed restructuring trustee from the law firm Fylgia, is optimistic about Convendum’s prospects:
– Convendum has a strong position and a well-known brand within the office market. With the right measures and a clear plan, I see great potential for the company to stabilize operations and continue as a leading player in the market.
Through these strategic steps, Convendum aims to secure its long-term future, strengthen its competitive standing and continue to offer high-quality, flexible office solutions to both existing and new customers.