The furniture industry is facing an increasing risk of bankruptcies due to a significant decline in designer furniture sales, according to industry analysts. This downturn is causing major financial losses for both retailers and manufacturers.
Statistics Denmark shows that the number of bankruptcies has been consistently above 200 per month throughout 2024, with July continuing this trend.
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Jesper Daugaard Faurby, CEO of the credit company Atradius, notes in an article on Woody Supply that while some industries are stable, others, including textiles, energy, and especially furniture, are encountering severe challenges.
Faurby attributes the financial strain in the furniture sector to falling sales of designer pieces. Additionally, consumers are becoming more cautious with their spending, which is affecting other sectors like textiles. There is a noticeable shift towards buying and selling second-hand.
The furniture industry is experiencing a particularly tough year. Earlier in 2024, Anders Juul Eilersen, director of the family-owned furniture manufacturer Eilersen, described the industry's situation as critical. Many companies have reported substantial financial losses, including Carl Hansen & Søn, which had to report a negative bottom line for the first time in 17 years.
Source: www.wood-supply.dk