old

Ready-to-assemble furniture maker CS Schmalmöbel has opened insolvency proceedings less than eighteen months after it was bought by venture capitalists.

 

It follows the German flatpack furniture company calling a temporary halt to production late last week "due to insufficient and not in-time deliveries of raw materials," it said in an emailed press statement.


CS Schmal didn't elaborate on the reasons it was having supply chain problems, though it did say its own order book was full, citing a successful recent outing at MOW, believed to be the last of its currently-planned exhibition bookings.


It said that it hoped to resume making deliveries next week.


By then, a preliminary insolvency administrator is expected to have been formally appointed by the German courts, which it hopes will kickstart a restructure designed to ensure the business can carry on trading.


The Waldmohr based cabinet furniture manufacturer, which employs around 400 people and has sales of €60 million, was sold by Nolte SE to Swiss/German investment company Gramax Capital last summer.


The Furnishing Report understands CS Schmal's insolvency and planned restructure will have a minimal impact on UK furniture retailers.



TO READ THE FULL STORY: