A kitchen and bathroom furniture manufacturer based in Herford, has filed for insolvency, according to the Bielefeld District Court. The move marks another blow to Germany's struggling furniture sector.
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Founded in 1995, Gela-Form specialised in foil-coated furniture for kitchens and bathrooms, supplying both private customers and manufacturers. Despite its longstanding presence in the industry, the company could not withstand increasing financial pressures.
According to reports, escalating investment and personnel costs contributed to the firm's downfall. Though it once employed around 250 people, only approximately thirty remain on staff. Their wages will be secured during the insolvency proceedings.
The company's collapse adds to a growing list of German industrial firms facing financial distress amid broader economic strain and mounting competition from low-cost producers abroad.
Source: www.t-online.de
