Yachting Art Magazine

Boating and yachting - The financial collapse of the Sweden Yachts group and the conviction of its former CEO, Mattias Rutgersson, illustrate the excesses of opaque management and the risks faced by buyers in the nautical industry when deposits are used to pay debts...

The collapse of Swedish shipbuilder Sweden Yachts, coupled with the conviction of Mattias Rutgersson, highlights the excesses of poor management and the flaws in the protections offered to buyers in the boating industry.

Sweden Yachts' reputation, established since 1974 on the quality of its yachts and the care taken in their finish, was not enough to prevent a spectacular collapse. Renowned for iconic models such as the Sweden 340 and 370, the shipyard had already filed for bankruptcy in 2008 before resuming operations in 2011 under the leadership of the CR Yachts group, headed since 2017 by Mattias Rutgersson.

On 11 June 2025, the Swedish courts brought a long legal process to an end: Mattias Rutgersson was sentenced to one year in prison and banned from holding any commercial position for three years. This verdict, handed down by the court in Uddevalla, punishes several years of fraudulent operations and embezzlement.

The practices uncovered by investigators revealed a well-oiled system. Rutgersson orchestrated the embezzlement of more than €4 million in advance payments made by customers for the construction of yachts. In many cases, the yachts ordered existed only on paper or as unfinished hulls. These funds were actually used to pay the director's personal and tax debts, rather than to finance the projects.

When the group was declared bankrupt at the end of 2023, the available assets represented only a tiny fraction of the debts: less than £10,000 could be identified, compared with more than £4 million owed to creditors. Faced with chaotic and incomplete accounts, the insolvency administrator was unable to determine precisely when the company had become insolvent, although there were signs of this as early as 2020.

The collapse of the construction site was partly rooted in the health crisis: the Covid-19 pandemic severely disrupted supply chains and slowed deliveries. Between 2020 and 2023, buyers, some of whom had committed hundreds of thousands of euros, saw their projects fail with no hope of delivery or reimbursement, as there were no solid guarantees or specific insurance policies in place.

The Swedish courts found no fewer than seven serious breaches of the company's accounting obligations. The annual accounts were never filed despite multiple reminders, and management practices exacerbated the difficulties at the construction site. The court emphasised the seriousness of the offences, pointing out that Rutgersson had already been convicted of similar offences in the past, which ruled out any alternative to imprisonment.

Beyond the individual punishment, this case shines a harsh light on the vulnerabilities of the nautical industry in the face of this type of misconduct. The collapse of Sweden Yachts leaves behind a shipyard at a standstill, unpaid subcontractors and a cheated clientele. This scandal could reignite discussions on the need to strengthen buyer protection tools, such as stricter financial health checks on shipyards, bank guarantees and insurance on advance payments.

The Sweden Yachts case illustrates the risks of misplaced trust when a manager exploits the reputation of a prestigious brand to conceal reprehensible practices. For the European nautical industry, this case could well serve as a warning and encourage a move towards greater transparency and vigilance. The aim is to restore the trust that is essential to the smooth running of the industry and to protect both investors and boaters.

Analysis - the situation at the shipyard had been unclear for years and was the subject of much discussion among Swedish boating professionals, particularly due to the creation of temporary companies to carry out customer projects and the obvious discrepancy between its product communications and the reality of its industrial facilities. A good site visit is usually a good indicator of a company's true situation. Actunautique had decided not to mention this shipyard...