Malmö smartwatch company Kronaby files for bankruptcy

The Malmö company behind the premium smartwatch brand Kronaby has filed for bankruptcy after an abrupt shift in strategy at its Chinese backers.

Malmö smartwatch company Kronaby files for bankruptcy
The Swedish actor Matias Varela has been hired to promote the watches. Photo: Kronaby
The filing, made on Wednesday, puts 60 people at risk of losing their jobs at the company’s offices in the city’s new Västra Hamnen district. 
Pål Borge, chief executive of Anima, told The Local that the company's majority owner, the Chinese electronics company Goertek, had decided to concentrate on their original business, component manufacturing, and shut down all of the brands they had begun to develop. 
“They decided to leave this branding business, and they also decided to do it extremely quickly, so they shut off all capital injection and support with immediate effect,” he said.
“They did this in December, so they left us one and a half months to find new investors, which was absolutely too short. We have a number of leads which we will continue to work on, but we have not been able to finalize them.” 
 Pål Borge came to the company after Sony Mobile. Photo: Anima
Kronaby was founded in 2015 by four executives from Sony Mobile, and launched its first 'hybrid' watches in 2017, taking on Apple by combining high-end materials and stylish design with almost invisible smart hardware. 
Revenues grew to over $50m last year, a 40 percent increase on the $37m worth of watches sold in its launch year, when it made a $127m loss. 
The watches, which range in price from about 2,000 kronor (around $215) to about 6,000 kronor (around $647), were positively reviewed by style magazines such as GQ.
Borge said the company had aimed to reach break-even by the end of 2019 and had only required a small further capital injection of a few million dollars to do so. 
“It was the final investment that could be done to make us break even,” he told The Local. “The biggest disappointment was that it was notified in such a short time, so we didn't get a real chance to find a new investor.”
Borge told Sydsvenskan that he hoped that the company’s administrators would be able to find a buyer or investor willing to come to the company’s rescue. 
“We have a platform ready and a business which should interest many, so our ambition is, together with the administrator, to find a solution,” he said to the newspaper. 

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US criminologist lauds Malmö for anti-gang success

The US criminologist behind the anti-gang strategy designed to reduce the number of shootings and explosions in Malmö has credited the city and its police for the "utterly pragmatic, very professional, very focused" way they have put his ideas into practice.

US criminologist lauds Malmö for anti-gang success
Johan Nilsson/TT

In an online seminar with Malmö mayor Katrin Stjernfeldt Jammeh, David Kennedy, a professor at New York’s John Jay College of Criminal Justice, said implementing his Group Violence Intervention (GVI) strategy had gone extremely smoothly in the city.

“What really stands out about the Malmö experience is contrary to most of the places we work,” he said. “They made their own assessment of their situation on the ground, they looked at the intervention logic, they decided it made sense, and then, in a very rapid, focused and business-like fashion, they figured out how to do the work.”

He said that this contrasted with police and other authorities in most cities who attempt to implement the strategy, who tend to end up “dragging their feet”, “having huge amounts of political infighting”, and coming up with reasons why their city is too different from other cities where the strategy has been a success.

Malmö’s Sluta Skjut (Stop Shooting) pilot scheme was extended to a three-year programme this January, after its launch in 2018 coincided with a reduction in the number of shootings and explosions in the city.

“We think it’s a good medicine for Malmö for breaking the negative trend that we had,” Malmö police chief Stefan Sintéus said, pointing to the fall from 65 shootings in 2017 to 20 in 2020, and in explosions from 62 in 2017 to 17 in 2020.

A graph from Malmö police showing the reduction in the number of shootings from 2017 to 2020. Graph: Malmö Police
A graph from Malmö police showing the reduction in the number of explosions in the city between 2017 and 2020. Graph: Malmö Police


In their second evaluation of the programme, published last month, Anna-Karin Ivert, Caroline Mellgren, and Karin Svanberg, three criminologists from Malmö University, reported that violent crime had declined significantly since the program came into force, and said that it was possible that the Sluta Skjut program was partly responsible, although it was difficult to judge exactly to what extent. 

The number of shootings had already started to decline before the scheme was launched, and in November 2019, Sweden’s national police launched Operation Rimfrost, a six-month crackdown on gang crime, which saw Malmö police reinforced by officers from across Sweden.

But Kennedy said he had “very little sympathy” for criminologists critical of the police’s decision to launch such a massive operation at the same time as Sluta Skjut, making it near impossible to evaluate the programme.

“Evaluation is there to improve public policy, public policy is not there to provide the basis for for sophisticated evaluation methodology,” he argued.

“When people with jobs to do, feel that they need to do things in the name of public safety, they should follow their professional, legal and moral judgement. Not doing something to save lives, because it’s going to create evaluation issues, I think, is simply privileging social science in a way that it doesn’t deserve.”

US criminologist David Kennedy partaking in the meeting. Photo: Richard Orange

Sluta Skjut has been based around so-called ‘call-ins’, in which known gang members on probation are asked to attend meetings, where law enforcement officials warn them that if shootings and explosions continue, they and the groups around them will be subject to intense focus from police.

At the same time, social workers and other actors in civil society offer help in leaving gang life.

Of the 250-300 young men who have been involved in the project, about 40 have been sent to prison, while 49 have joined Malmö’s ‘defector’ programme, which helps individuals leave gangs.

Kennedy warned not to focus too much on the number of those involved in the scheme who start to work with social services on leaving gang life.

“What we find in in practice is that most of the impact of this approach doesn’t come either because people go to prison or because they take services and leave gang life,” he said.

“Most of the impact comes from people simply putting their guns down and no longer being violent.”

“We think of the options as continuing to be extremely dangerous, or completely turning one’s life around. That’s not realistic in practice. Most of us don’t change that dramatically ever in our lives.”

He stressed the importance of informal social control in his method, reaching those who gang members love and respect, and encouraging them to put pressure on gang members to abstain from gun violence.

“We all care more about our mothers than we care about the police, and it turns out that if you can find the guy that this very high risk, very dangerous person respects – literally, you know, little old ladies will go up to him and get his attention and tell him to behave himself. And he will.”