Paw Sko, a family-owned shoe chain, is closing all nine of its stores nationwide and its online shop due to consistent sales decline. CEO Jan Wentzel confirmed the closure, citing unsustainable business expenses relative to revenue, and a pessimistic outlook for increased revenue in the shoe retail sector.

The closure will be a gradual process, unfolding over the coming months to ensure a smooth transition. Wentzel emphasized that the company is committed to a controlled and orderly wind-down of operations.

Paw Sko was established in February 1974, marking over five decades in the shoe industry. The company has experienced financial losses every year since 2020, with the exception of the 2021/2022 fiscal year, which saw a profit of 14.7 million kroner. The most recent financial report for 2023/2024 revealed a deficit exceeding 7 million kroner.

In the latest financial statement, management attributed the challenging year to reduced consumer spending driven by inflation and geopolitical instability in Europe, deeming the results unsatisfactory. Despite these challenges, Paw Sko’s equity stood at over 38 million kroner at the end of last year, ensuring that the closure will not result in losses for suppliers or employees, according to Wentzel.