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Coffee Chain Fika Abruptly Closes Seven NYC Locations Following Crazy Expansion

The Swedish-inspired cafe and bakery closed its remaining seven locations last week

A coffee cup with the words “Fika” written across it Fika [Official]

Swedish-inspired cafe and bakery Fika closed all of its New York City locations late last week following its recent bankruptcy filing.

A spokesperson says the closure was “unexpected,” and a statement released on social media cites that company shareholders didn’t share the same vision for the brand as its founders.

The cafe had seven locations left, a big drop from the 17 cafes the chain operated at its peak. Fika — known as a a destination for coffee and chocolate — opened in 2006 and soon went on an opening spree in New York, to the point that the company was considered one of the fastest-growing chains in the city. Between 2014 and 2015, Fika reportedly opened at least eight shops in a 10-month time period.

Founder Lars Akerlund had plans to expand in the U.S. and globally as well, following a strategy similar to Apple, where each city would be home to a flagship location in additional to smaller satellite stores.

But the quick expansion led to store closures in 2017, and last year the chain filed for Chapter 11 bankruptcy protection for 11 of its remaining locations. Then, a spokesperson denied the chain was closing, instead saying that the bankruptcy filing would allow the business to restructure and stay open.

Yet late last year Fika was auctioned off to a group of investors during the bankruptcy process, according to Cozen O’Connor, the law firm that handled the transaction. The firm states that the chain expanded too quickly and was unable to lock down enough investors to cover expansion and start-up costs.

All the remaining cafes closed last Friday.

FIKA

114 W 41st St, New York, NY 10036 +1 212-706-0565 Visit Website