Round, the Finnish cafe chain famous for its vegan donuts, has filed for corporate restructuring this week. The company's location in Helsinki's Itis shopping center sought debt restructuring on Wednesday.
CEO Harri Siekkinen addressed the company's situation in an email statement. He confirmed that all cafes intended to remain open have applied for debt restructuring.
The Itis location previously faced bankruptcy proceedings initiated by pension insurance company Elo. Siekkinen stated the matter has been resolved with Elo, and the Itis cafe continues normal operations.
Bankruptcy filings are automatically canceled when debt restructuring begins, according to the CEO.
M01 Restaurants Oy, the chain's first location on Iso Roobertinkatu street, also filed for bankruptcy. That location closed operations one year ago. The company filed for its own bankruptcy.
Siekkinen explained the original location had been inactive this year while a larger cafe operates at the other end of the same street under a different company structure.
M01 Restaurants accumulated multiple payment defaults between August and October. Most involve enforcement matters. These will be handled through bankruptcy proceedings since the company has been inactive for a year.
Round gained popularity through its completely vegan menu, particularly its donuts. The chain previously reported financial challenges when its Asematunneli location faced bankruptcy proceedings in March.
In June, the cafe chain announced it would begin offering animal-based products alongside its vegan options. Company representatives stated there wasn't enough demand for a fully vegan chain in the current economic climate. Round's signature donuts remain exclusively vegan.
Siekkinen confirmed animal-based products will remain part of the chain's offerings moving forward.
When asked about the chain's future viability, the CEO reported cafes have been profitable for the last three months following several successful changes. Debt restructuring reduces company loans, invoices, and debts while extending payment deadlines.
The business itself currently generates profit but not enough to keep up with loan and invoice payments. The company seeks growth through shorter pop-up agreements with revenue-based rental terms.
The chain's shift from its original vegan-only concept reflects the challenging economics of specialty food businesses in today's market. While the company claims recent profitability, the need for debt restructuring suggests deeper financial pressures remain unresolved.