"Several cost rationalisation programs have been carried out simultaneously, and we've had negotiations with several interested parties about selling or merging the company. Negotiations have gone far, but unfortunately haven't lead to any finalised deal," the firm wrote in a statement released on Monday.
ONOFF was founded in 1982, and today the company has 67 stores in Sweden, six in Estonia and one store in Finland.
"It's very unfortunate for all ONOFF employees, but also for suppliers and customers. It's our hope that the negotiations we conducted this spring will lead to at least some parts of ONOFF continuing to operate," said Sten Schröder, partner and chairman of the board, in the statement.
Jessica Wallin, press officer at rival store Elgiganten, has also noted the extremely stiff competition, declining prices and small margins that have been the rule in the Swedish home electronics market for years.
"It's not surprising to see one player disappear," she said to news agency TT.
Wallin doesn't believe that ONOFF's bankruptcy will have much of an effect on Elgiganten, which is still able to turn a profit.
"We're going to continue lowering prices, investing in customer service and making sure our customers feel secure."