During Wednesday morning, the battery giant Northvolt filed a bankruptcy application to Stockholm District Court.
“After an exhaustive attempt to investigate all available means to secure a viable financial and operational future for the company, the Board of Directors of Northvolt AB announced today that it has applied for bankruptcy in Sweden,” the company writes in a press release.
According to Magnus Henrekson, professor of economics and researchers at the Institute for Business Research, the message is expected.
– It even took longer than I had thought. You have come to a point where you cannot pay taxes and social security contributions, and then there is no return, he says.
Strikes against the municipality: “huge losses”
Northvolt is then in the autumn under reconstruction. The company’s main operations are run at a large battery factory in Skellefteå, which created jobs for several thousand. At the same time, Henrekson is criticizing the business being placed on Skellefteå, and believes that the bankruptcy will hit hard against the municipality.
– Such a place cannot swallow such a large location, it knocks out other businesses when recruiting key personnel from there. There are many who have built housing and bought villas at high prices to live there, which will make huge losses, he says and continues:
– Skellefteå municipality, which has made many surrounding investments that would be profitable and lead to increased tax power, stands there with debts but without revenue when there is no business.
“Most complicated bankruptcy in Swedish history”
Exactly how many people are now losing their jobs is still unclear, but the company has about 5,000 employees.
Now a bankruptcy trustee will take over the process to see what assets are in the company, and manage the sale of these and the business.
– It should be realized as soon as possible, then you should see if there is any money left for different creditors. It may be the largest and most complicated bankruptcy in Swedish history, it can take ten years to sort out everything, says Henrekson.