Not all the startups that plunge into the business ecosystem survive the downfalls and relish success. When bad fortunes strike, some startups witness a drop in their revenue leading them no other choice than bankruptcy.
Recently, Amsterdam-based Leapp filed for bankruptcy. Now, Swoop, which is also a provider of refurbished and used Apple products has also gone bankrupt.
Back in July, it was reported that the Swoop investors have terminated their collaboration. In a recent development, the company has officially announced that it has filed for bankruptcy through its partner Awin. Recently, news about the bankruptcy was revealed by iCulture but now it is official and Swoop had to file for bankruptcy.
Rapid growth is the cause
Similar to Leapp, Swoop has also become bankrupt due to its rapid growth. According to the company website, there were 100 employees working for the company. The company did not get enough financing leading to bankruptcy. To put in simple words, we can say that Swoop has succumbed to its success.
Swoop sold its Almere store
Initially, Swoop had five stores in the Netherlands. But earlier this year, it was forced to sell its Almere store. The company was hinting that something was wrong as it withdrew as sponsor of the premium league club Vitesse. This was followed by the shut down of its store at Almere. Now, Swoop has four branches in the Netherlands located at Den Bosch, Tilburg, Utrecht and Nijmegen.
Refurbished market is down
There are reports that the market for the refurbished products is down. Eventually, this has made it tough for Swoop to stay successful in the market and keep its head above the rising difficulties. However, it is said that there is enough trade for now as the refurbished products from Apple hold high value for a long time.
What future holds for Swoop
Swoop’s official website is still live. Users who have already purchased products from Swoop have to just believe that the new owner or investor will take the guarantee of the products. Usually, the refurbished product provider offers 2 years of warranty on the used devices.
Restart seems doubtful
While Leapp made a new start again, thanks to the investment from Nobel Capital, it remains to be known if Swoop will also make a new start. If the company does not find any investor to back it, then it may not be relaunched. Only time can answer the same.
Stay tuned to Silicon Canals for more updates in the tech startup world.