According to documents reviewed by Nordic Property News, the company was declared bankrupt on April 8 following a decision by the Stockholm District Court. The documents reveal that it was representatives of Kvalitena themselves who filed the petition for bankruptcy.

"The company is unable to pay its debts as they fall due, and this inability is not merely temporary; therefore, the company is insolvent," the filing states.

Kvalitena has been insolvent for some time and has struggled with debts amounting to billions of kronor, making the decision unsurprising. The reconstruction process began in February last year and has continued until now without a resolution to the company’s financial difficulties. The district court has now ruled to place Kvalitena into bankruptcy.

The company previously owned, among other assets, the prestigious property at Strandvägen 5A, which has since been sold to Erik Selin. In addition, Kvalitena has sold other exclusive properties in Östermalm during 2024 in an effort to raise funds.