Major Swedish e-cigarette chain changes ownership

25 Cigoteket employees to remain after sale

One of Sweden's largest vejp companies, Cigoteket, is changing hands. But the shops continue to operate as usual.
So says founder John Adams, who is now winding down much of his business in Sweden.
- It feels strange, but it doesn't affect the staff and I'm sure the company will grow stronger under the new owners," he told Vejpkollen.

Like several other companies in the e-cigarette industry, Cigoteket has suffered several setbacks in recent years. It started in the US in the autumn of 2019. An outbreak of lung damagecaused by illegal cannabis products, were linked to e-cigarettes.

Initially, authorities warned all e-cigarette users that they could be at risk of lung damage. They then changed their minds and pointed to the real reason: the substance itself. e-acetate in THC products. So not regular e-cigarettes.
But the damage was already done, says Mr Adams.

"The companies did very well and we increased turnover by almost 100 per cent every year until the autumn of 2019. Then the US authorities came out with their recommendations and really messed things up. Even though they changed their minds later, we lost almost all of our American customers" says John Adams.

Coronavirus stopped new start

Even then, Cigoteket decided to downsize its operations in Sweden, resulting in a few closed stores. The idea was to reopen them when the situation became more stable, says John Adams.
But then Covid-19 came along and turned everything upside down. Again.

"The closure of factories in China and extreme delays of products was an extremely big blow for us. It became very difficult to get authorised and registered products into Sweden," says John Adams.

Plans to reopen closed shops were now increasingly distant.

"We wanted to focus on the Swedish market in 2020 and reopen new stores in mid-2021. Unfortunately, that didn't happen."

Employees remain

Last week, John Adams chose instead to declare two of his Swedish companies, Cigoteket and Subohm, bankrupt. The store operations and online shop were sold to the company Svenska Vapegruppen AB. Vapegruppen is backed by, among others, a former employee of Cigoteket.

Cigotec's 25 regular employees will not be significantly affected, according to Mr Adams. They have all been offered to stay in their jobs.

Cigoteket becomes largest customer

John Adams, for his part, will continue in the industry with his internationally based import company SubOhm Co ltd.
With Cigoteket as its largest customer.

"My brother and I will also continue to work internationally with the rest of the EU, the Middle East and Asia, which is a big market for the products we provide. We also have a new project underway in Sweden that we will launch shortly," he told Vejpkollen.

Cigoteket currently has stores in Norrtälje, Stockholm and Gothenburg as well as online. According to John Adams, the plan is to continue as usual, but under new management.

Do you like Vejpkollen? Then you can support the work of the magazine!

SWISH: 1231093830

Or support continuously. Become a Patreon (i.e.: support subscription to Vejpkollen). Link to the PATREON VEHICLE CHECK on PATREON

2 Comments on “Stor svensk e-cigarettkedja byter ägare

  1. Both men behind Svenska Vapegruppen AB are former employees of Cigoteket. The company is signed by John Adams' brother.

    1. A case of 'keep it in the family', then. Not entirely uncommon. Thanks for the info! /stefan

Leave a Reply

Your email address will not be published. Required fields are marked *