The company faced significant challenges, including a payment cessation from a major Japanese client embroiled in a U.S. bribery scandal, and a contentious dispute with MTR Express, which terminated its contract with Snowfall.

Stockholm District Court denied the company’s request to extend the reconstruction period, citing doubts about Snowfall’s ability to settle its debts and concerns over internal financial reporting inconsistencies.

[18] Snowfall announced it created Junction in 2019, a modern cloud-based and open API (Application Programming Interface) ecosystem to reduce the technical barriers and costs of integrating systems and to increase connectivity between a wider range of travel suppliers and sellers [19] Chief Product Officer, Philip Saxholm, described in an interview with TravelNews.se in 2021, Junction as a B2B platform focused on connecting operators, retailers, and partners across multiple travel sectors such as aviation, rail, bus, and ferry services.

[2][23] Roughly a year later, the company acquired a group travel app called AmigoGo and brought its founders, Nick Castrioty and Josh Sparkes, into the business.

[24] Despite efforts to maintain strong financial backing and investor confidence, reports surfaced in November 2024 that the company struggled with issues such as skipping payroll, reducing staff, and closing locations.

These challenges were attributed by the CEO, Stefan Cars, to “fast-paced growth” outpacing operational capabilities, general mismanagement, and a high turnover at the CFO level.

[25] In an article in The Company Dime, the author's highlighted that critics had pointed out that Snowfall’s business model relies on outdated technology, and its ambitious claims lack focus.

In a January 2025 interview, CEO Stefan Cars acknowledged management missteps, including overambitious growth and rapid hiring, but denied any financial misconduct, asserting that the company is now “back on track” with substantial investments and restructuring efforts.

[26] A group of 25 current and former employees strongly criticized Cars’ claims of stability, highlighting severe internal issues such as unpaid wages stretching across multiple months and regions, including the US, UK, and Canada.

[27] This fallout was exacerbated by reports of layoffs and office closures, as well as what some employees called “reckless promises” made to investors without a clear plan for sustainable growth.

Employees accused the leadership of prioritizing rapid expansion over operational efficiency and failing to address foundational issues, leaving the workforce demoralized and skeptical of the company’s future.