We Are Padel applies for corporate restructuring — 50% of all venues in Sweden can close

One of the world's largest padel chains, We Are Padel (WAP), is applying for corporate restructuring in Sweden. According to an announcement made available to Padel Alto, 50% of all facilities may be closed, and employees will be affected.

The Swedish company We Are Padel, part of the Ledap Group, with 300 employees and over 80 venues, is requesting restructuring of the company. The Swedish site Padelfeber was the first to report the news. 

Padel Alto has received an internal communication stating that 50% of all facilities may be closed. 

”Closing facilities is a tough decision to make, but necessary to secure the healthy core of the WAP. We are undergoing the restructuring process to address the elements facing profitability challenges in a highly competitive market and to align the supply of padel halls with demand, " states an internal letter sent to the employees in whom Padel Alto has taken part.

It continues: 

”We cannot rule out that businesses and employees will be affected, but exactly how is too early to tell. We understand that this type of announcement is unpleasant and leads to uncertainty. However, it is the best option at this stage, and we promise to inform you how the process progresses”. 

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

On Thursday, the application was submitted, and according to information provided to Padel Alto, the company also held a large meeting with its staff. The meeting was told that discussions with landlords on rent reductions have begun. 

Over-establishment in Sweden

This is what the company's founder, Pontus Gustafsson, told Padelfeber:

— After evaluating various options, we have decided to implement a restructuring process to deal with the parts of the business that have profitability challenges. 

An over-establishment of padel clubs has hit Sweden hard after the pandemic, and facilities have had to close. The chain has also invested abroad, including in Germany, Great Britain, and the Emirates. 

Last week, We Are Padel's CEO, Christoffer Lilja, resigned from his post.