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Flatpack furniture kit maker Tvilum faces survival battle
Tvilum, one of the largest ready-to-assemble furniture makers in the world, filed for insolvency over the weekend with court-appointed lawyers now trying to find a buyer or engineer a restructure.

 

Officials from law firm Horten were appointed by the Danish bankruptcy court to oversee a hoped-for restructure of the Fårvang headquartered flatpack kit maker, which has substantial UK sales through national and Internet retailers.


It follows the sending home of 700 Danish workers late last week as the company, owned by U.S investment company Revolution Capital since 2013, ran into difficulties.


Ulrik Holsted-Sandgreen, one of two Horten partners overseeing the insolvency, said cashflow had been affected by changes to Danish export VAT rules and difficulties at an unspecified overseas retail customer. Pressure from suppliers also impacted the company, with it being asked to pay upfront for components and raw materials.


Tvilum's large production plant in Poland, established around 2015, was said not to have been yet affected by the factory closures.


The manufacturer, which before its 2013 buyout was owned by American furniture and building products conglomerate Masco Corp, has been loss-making for several years. In 2016, it recorded a net loss of 11 million kroner (£1.3m) on sales of 1.27 billion kr. (£150m).

Tvilum operates from four factories in all and produces around 8 million pieces of furniture each year. Horten hopes to either find a buyer or be able to restructure the business, minimising job losses.

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