Eurobrands distribution AB, which operates the website Cigge.se and seven physical stores in Sweden, files for bankruptcy. This was announced by the owner Harm Reduction Group in a press release.
"We have fought hard to save Eurobrands Distribution, but when the banks close the credits, we no longer have any alternatives" says Petter Strömberg, CEO of Harm Reduction Group and the one who once founded Eurobrands based in Borlänge.
It was after a unsuccessful sale of a debt-ridden subsidiary that Eurobrands Distributions AB itself had to throw in the towel. Eurobrands Distribution currently operates 18 vejp stores in Sweden. Seven of these are physical Cigge stores, mainly in central Sweden, and 11 so-called Cigge-instores in shared premises throughout the country.
Part of a major smoke-free initiative
Eurobrands Distribution was founded in 2013 and is Sweden's largest chain for the sale of vejp products and other smoke-free alternatives to cigarettes. Since 2022, the company is part of the group Harm Reduction Group AB (HRG), a Norwegian/Swedish merger of Norse Vape AB, Norse Vape LTD, Eurobrands AB and Eurobrands Distribution AB. HRG focuses on the sale and distribution of smokeless nicotine products in Norway, Sweden and the United Kingdom.
Unclear about the future of the shops
The bankrupt Eurobrands Distribution AB has mainly managed seven physical stores in Sweden and several e-commerce stores and currently has 53 employees. It is not clear from the press release how the decision affects the stores and staff in Borlänge, Västerås, Örebro, Uppsala, Farsta, Karlstad and Norrköping, but Vejpkollen understands that at the time of writing, staff have been given notice of redundancy.
Does not affect sales to businesses
According to the CEO Petter Strömberg the group's other businesses will not be affected by the bankruptcy. This also applies to its sister company Eurobrands AB which, among other things, distributes nicotine products such as disposable vejps and white snus to major chains such as Direkten and Preem.
"HRG's balance sheet remains positive with book assets exceeding liabilities, and the group continues to focus on long-term growth. Eurobrands Distribution AB's bankruptcy filing does not affect the other companies in the HRG group. Norse Vape and Eurobrands AB will continue to operate as usual." writes Petter Strömberg in HRG's press release.
Vejpkollen has reached out to Harm Reduction Group CEO Petter Strömberg for further comment.
