La-Z-Boy UK has opened consultations over the potential closure of its Colne factory, formerly Furnico, citing persistently low order volumes and challenging market conditions. The facility was acquired in 2021 to expand the company's European manufacturing capability.
"Market conditions remain challenging across the furniture manufacturing sector," the company explained. "Over the past two years, La-Z-Boy's UK manufacturing business has experienced consistently low order volumes, which has impacted operational costs."
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The consultation period, which began on 29 October, will last at least 45 days. During this time, operations and production will continue, while the company examines all possible alternatives. "No final decision has been made," La-Z-Boy UK stressed.
The move highlights ongoing pressures in the upholstered furniture sector, with manufacturers facing fluctuating demand and rising operational costs. La-Z-Boy has previously expanded in Europe through acquisitions and licensing deals, including partnerships with DFS and an Austrian manufacturer, but the Colne plant's future now hangs in the balance.
The consultation process will determine whether closure is the most viable option, with the company continuing to evaluate potential solutions before making a definitive decision.
Source: www.furniturenews.net
