Copenhagen-based furniture and design company has filed for bankruptcy following declining sales and high rental costs at its Strøget store. The decision comes after a prolonged period of financial difficulty, including the closure of its Aarhus store in 2023.
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Paustian Design , owned by Frantz Longhi since 2017, Paustian was previously saved from bankruptcy when the Aarhus Bankruptcy Court allowed the business to continue under the company Paustian Design Est. 1964, supported by several unnamed investors. Despite these efforts, the company has determined it is no longer viable to maintain operations.
Lawyer Anders Bendtsen, appointed as curator, stated that the Paustian brand retains significant value in Denmark and could potentially continue under new management. However, no concrete negotiations for a sale are currently underway.
Paustian's inventory, valued at around ten million kroner, will be sold in a clearance sale. The curator highlighted the possibility of maintaining the Paustian "universe" through future ownership changes, reflecting confidence in the brand's enduring recognition within Danish design circles.
The bankruptcy illustrates ongoing challenges in the designer furniture sector, where rising operating costs and a contracting market have placed long-established businesses under considerable strain.
Source: www.wood-supply.dk
