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Paderborn, GER. — Furniture manufacturer Wellemöbel is to restructure through 2015 after applying to the courts in its native Germany for protection from creditors.


The bedroom and home office producer has gained approval from a court in Paderborn to find a way to cut costs while continuing to trade as a going concern.


It is taking advantage of a German insolvency procedure which allows the existing management the time to restructure its business in partnership with a court-appointed administrator, in this case the specialist lawyer Stefan Meyer.


The restructuring requirement has arisen because of falling sales and softer demand, the company said. Revenue has fallen from around €104m last year to an expected €96m in FY 2014. The restructuring process is expected to start officially in February and last between six and eight months.


Wellemöbel, which does significant UK business through major independents and groups, employs over 900 people across three German factories.



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