Two prominent furniture manufacturers face potential closure as efforts to secure investors remain unsuccessful. Without financial backing, Staud, based in Bad Saulgau, will be forced to cease operations in early February.
Photo: Leuwico.
Staud and Leuwico, part of the Vivonio Group faces trouble securing investment, hence the closure awaits as the month ends. Dr Dietmar Haffa, the provisional insolvency administrator, stated that while intensive negotiations with potential investors continue, 'without an investor, the continuation of business operations is not possible due to the ongoing losses and the complex "just-in-time production".' The insolvency benefit period for Staud ends in January, leaving the company unable to cover wages. If no investor is secured, most of its 150 employees will be dismissed on 1 February.
Leuwico's situation appears slightly better, with interested investors reportedly impressed by its product quality and workforce expertise. However, the company also faces financial challenges, and without immediate investment, its future remains uncertain. Dr Haffa noted, 'the fact that we will be operating at full cost again from February does not make the restructuring efforts any easier.'
The insolvency of both companies is attributed to declining sales and broader industry struggles. As negotiations continue, a swift resolution is needed to prevent widespread job losses and the shutdown of two long-standing furniture manufacturers.
Source: www.moebelfertigung.com