The numbers behind WAP's downfall: how many millions the company loses every month

The Swedish company We Are Padel (WAP), part of the Ledap Group, would take over the padel world. But on Thursday, news emerged that the company is filing for corporate restructuring. The company is losing about €1.4 million every month. 

The Swedish company We Are Padel, which runs around 80 venues in Sweden and has invested in countries such as Germany, the United Kingdom, and the United Arab Emirates, is requesting corporate restructuring.  

The decision affects facilities and employees in Sweden.

The Swedish site Breakit has reviewed the figures from the reconstruction of the company, which is controlled by the venture capitalist company Triton and is part of the Ledap Group. 

”The number of available courts on the market has more than doubled in one year. This has resulted in the number of hours played per available court falling by over 50% on a regional basis, with the consequence that a large number of padel centers are no longer profitable," the application states. 

WAP currently operates around 80 venues and has around 60 subsidiaries.

”Unsustainable”

Around the end of 2021, most of the WAP facilities showed profitability, the company writes. But the situation started to change in the spring and worsened. Many venues have since this summer started to go with losses.

”The total monthly loss currently amounts to about 15 million Swedish crowns (about 1,4 million euros), which is unsustainable", writes WAP. 

Furthermore, the application states that the only way for the company to stop the bleeding is to close unprofitable padel centers, reduce overheads, and negotiate rental terms.