A Danish furniture retailer has been declared bankrupt, just two weeks after its parent company, online retailer Byflou, also entered bankruptcy proceedings.
© Piotr Adamowicz | Dreamstime
Houmøllers Møbelhus, a long-established furniture business with over 100 years of history in Skive, was acquired by Byflou in 2024 as part of a strategy to digitalise its operations. Despite efforts to improve performance, the company continued to face financial difficulties. Its most recent accounts showed a reduced loss of around DKK 364,000, compared to nearly DKK 2 million the previous year.
The collapse follows Byflou's own bankruptcy, which was triggered by sudden liquidity issues. According to management, a hidden accounting error and lack of support from its bank ultimately forced the business to close. Over the past year, Byflou had already cut its workforce by two-thirds in an attempt to stabilise finances.
A trustee has been appointed to oversee both bankruptcy cases, as stakeholders assess potential outcomes. The dual collapse highlights ongoing pressures in the furniture retail sector, particularly for businesses attempting rapid digital transformation amid tightening financial conditions.
Source: www.bigfurnituregroup.com
