The scaffolding and construction company Stillkom has filed for bankruptcy in Southern Rogaland District Court. This collapse leaves approximately 90 employees without jobs and reveals debts exceeding 31 million Norwegian kroner. Company founder Tor Harald Nordvik described the situation as "completely terrible" after dedicating ten years to building the business.
Stillkom's bankruptcy stems from a perfect storm of market challenges. The construction sector across Norway faces severe pressure from high interest rates, increased costs, and reduced demand. Nordvik explained that his company failed to secure any major new contracts last year, creating a critical cash flow shortage. The situation became particularly dire in Oslo, where intense competition and few new projects made sustainable operations impossible.
The company's business model also contributed to its downfall. Stillkom operated by leasing scaffolding directly from manufacturers and then subleasing to clients, which meant they never owned the capital equipment. This approach left them vulnerable when market conditions deteriorated. Additionally, recent changes to Norway's temporary staffing regulations forced the company to shift from renting out workers to becoming a subcontractor, significantly increasing their financial risk exposure.
Labor market challenges further complicated operations. "It's difficult to find qualified workers because of the weak krone," Nordvik noted. "We depend on Eastern European workers who convert all wages to euros." This currency disadvantage made Norway less attractive for the skilled labor the construction industry desperately needs.
The bankruptcy affects Stillkom's subsidiary companies including Stillkom Prosjekt, Stillkom Housing, and Stillkom Invest. Court documents show the company's assets total approximately 21 million kroner against their 31 million kroner debt. Just last year, one subsidiary generated 93 million kroner in revenue with a 1.9 million kroner pre-tax profit, demonstrating how quickly market conditions can destroy even previously successful operations.
Norway's construction industry continues to struggle with daily bankruptcies among subcontractors and suppliers. Recent months have seen facade producers, painting contractors, and bathroom manufacturers face similar fates. In autumn alone, 30 workers lost jobs when a major Levanger company collapsed, while 62 more became unemployed after a Haugesund housing developer failed.
This pattern reflects broader economic pressures affecting the entire Nordic construction sector. High borrowing costs have cooled housing markets while inflation has increased material and labor expenses. Companies that expanded rapidly during boom years now face restructuring or closure as demand contracts.
Nordvik expressed particular concern for his former employees, though he noted most have found new positions. The company chose early bankruptcy filing to protect creditors from further losses. As Norway's construction crisis deepens, industry observers expect more companies to face similar challenges in the coming months.