But the founder, Jens Nylander, told reporters that he has no intention of getting out of the business.
“It doesn’t matter how many times I go bankrupt. I’ll still continue to sell digital products,” he told Computer Sweden.
The company recently set up another operation, JOS AB, which was intended to sell headphones. But now JOS will take over Jens of Sweden’s entire operation, financed by a parent company in Switzerland.
“It’s important that our old customers will be able to come back to us. All the staff will be offered jobs in the new company,” said Nylander.
The company has had a high media profile thanks to Nylander’s outspoken views on copyright issues. His company was in the news last week for refusing to pay ‘cassette compensation’, a charge levied on music devices to compensate copyright-owners whose material might be copied.
But according to Computer Sweden, Jens of Sweden was crippled by two unfortunate relationships.
The company says that its mp130 model, manufactured by a South Korean company, was defective. Jens of Sweden withheld payments of 1.8 million kronor, sent back a thousand players and footed a repair bill of over 3 million kronor.
In the US, a reseller went bankrupt owing the company 800,000 kronor. And in 2004 Swedish customs decided that thousands of Jens of Sweden mp3 players were incorrectly classified. Instead of the 2% import duty, they should have been paying 10% since they included radios.
But the ‘king of mp3 players’, as he was dubbed by Svenska Dagbladet, is optimistic.
“Considering the orders we have and the international demand for our brand, the future is positive,” said Nylander.