Swedish e-commerce companies Zoofabriken and Danira Telecom enter bankruptcy

Two Swedish e-commerce companies have entered bankruptcy following periods of rapid growth or significant revenue declines.

Zoofabriken, an online retailer specializing in pet food and accessories, has filed for bankruptcy. Despite being marketed as a success story by the company X-Society—claiming 1.5 million SEK in turnover within its first eight weeks—the business faced severe operational issues. Customers reported unfulfilled orders and missing refunds, leading to numerous complaints to the Swedish Consumer Agency and negative reviews on Trustpilot. One co-owner attributed the failure to growth that outpaced the owners' capacity to manage.

Danira Telecom AB, the operator of themobilestore.se, was declared bankrupt by the Södertörn District Court on October 9. The company, which specialized in mobile accessories and consumer electronics, saw a sharp decline after reaching a peak turnover of 35.5 million SEK and a 2.6 million SEK profit in the 2022/2023 fiscal year. In the most recent fiscal period ending February 2025, turnover dropped by over 40 percent to 16.7 million SEK. The company cited intense market competition for the downturn and had reduced its staff from ten employees to none prior to the bankruptcy filing.