Following the recent news of the bankruptcy of well-known Danish furniture store Werenberg, another furniture store in the region, in Odense, has announced it is facing a financial crisis after posting a significant loss for the 2023/24 fiscal year.
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The company, Lindegaard Poulsen, which specialises in high-end furniture and lighting brands such as Louis Poulsen, Hans J. Wegner, and Arne Jacobsen, recorded a loss of 3.6 million DKK before taxes. This marks a sharp decline from the previous year, where it had posted a profit of 1.2 million DKK.
The CEO and majority owner, Søren Lindegaard Poulsen, attributes the poor performance to the challenging conditions within the furniture industry, compounded by factors like inflation, the ongoing war in Ukraine, and high interest rates. The company also had to make extraordinary write-downs on its inventory due to declining sales.
Despite the difficult financial situation, the company is not in immediate danger. According to a statement in the management report, the future operations of the business are secured through a support declaration from the ownership group, which ensures that the company can meet its obligations and continue its development until at least April 2025. As of the end of the fiscal year, the company's equity stood at 6.1 million DKK, though this has decreased from previous years.
Source: www.wood-supply.dk