Founded in 1653
Two furniture companies from southern Germany are insolvent
Updated 12/02/2024 - 3:08 p.mReading time: 1 Min.
GermanyS economic difficulties are leading to an ever-increasing domino effect: two conventional companies from southern Germany are now filing for bankruptcy. Several hundred employees are affected.
The furniture manufacturers Leuwico and Staud have to file for bankruptcy. This emerges,among other things,from a press release from the responsible law firm. The two companies together employ around 260 people.
both companies belong to Vivonio Holding GmbH. As the pulpit writes, the parent company also ran into financial difficulties – and also had to file for bankruptcy. The statement cites the general economic situation in Germany as the cause of the two companies’ financial problems: it has led to falling demand and materials have also become more expensive.
though, the managing directors of Staud and Leuwico are optimistic. “With the right partner, we see a good chance that there will continue to be a market for furniture from Staud and Leuwico in the future,” she quotes in the press release. Salaries for the employees of the two companies are guaranteed until the end of January. Despite insolvency proceedings, business will continue to operate.
Leuwico was founded in 1923. The company specializes in office furniture. Staud is even significantly older. According to its website, the company goes back to a carpentry workshop founded shortly after the end of the Thirty Years’ War. Staud was founded in 1653 and produces bedroom furniture.
How can furniture manufacturers adapt to changing consumer preferences in the current economic climate?
Interview with Dr. Martin klein, Furniture Industry Expert
Time.news Editor: Welcome, Dr.Klein. Thank you for joining us today to discuss the recent insolvencies of Leuwico and Staud, two prominent furniture manufacturers in southern Germany. Could you begin by providing context around thes companies and their significance in the furniture industry?
Dr. Martin Klein: Thank you for having me. Leuwico, established in 1923, specializes in office furniture, while Staud, with roots dating back to 1653, produces high-quality bedroom furniture. Both companies have historical significance and have been pillars in the German furniture market, contributing to local economies and providing hundreds of jobs.
Time.news editor: What do you think led to the insolvency of these companies,especially under the umbrella of Vivonio Holding GmbH?
Dr. Martin Klein: The insolvency can primarily be attributed to the prevailing economic difficulties in Germany. Rising material costs and declining demand have taken a toll on many customary manufacturers like Leuwico and Staud. The statement from their law firm highlighted the broader economic issues, indicating that these companies are not alone in facing such financial challenges.
Time.news Editor: It’s noteworthy that the managing directors expressed optimism about finding a partner for future business opportunities. How realistic do you think this outlook is given the economic climate?
Dr. Martin Klein: Optimism in the face of adversity is essential, and while the current economic situation is challenging, there is potential for recovery. If they can find a suitable partner who shares their vision and operational capabilities, they could indeed stabilize and tap into niche markets. The demand for high-quality, locally-produced furniture remains, especially as consumers become more conscious of sustainability and craftsmanship.
Time.news Editor: Could you shed some light on the implications of these insolvencies on the broader furniture industry in Germany?
Dr. Martin Klein: The domino effect of businesses facing insolvency can indeed shake consumer confidence within the industry.However, it can also lead to market opportunities where more adaptable and innovative companies can flourish.The crisis may spur a wave of consolidation, which might enable stronger brands to emerge from the ashes, focusing more on sustainability and innovative designs that meet evolving consumer preferences.
Time.news Editor: What practical advice would you give to readers who might be concerned about the future of furniture manufacturing in Germany?
Dr. Martin Klein: Firstly, it’s worth keeping an eye on market trends. Consumers should support brands that prioritize sustainability and local manufacturing, which, in turn, can help stimulate the economy. For industry stakeholders, diversifying their product offerings and being flexible in their operations will be crucial to surviving these economic challenges. Innovation in design and materials will also be key factors for future success.
Time.news Editor: Thank you, dr.Klein, for your insights.The situation for Leuwico and Staud serves as an vital reminder of the vulnerabilities many traditional industries face amidst a changing economic landscape.
Dr. Martin Klein: Thank you for discussing this timely topic. It’s crucial for stakeholders and consumers alike to remain informed about the dynamics of the furniture market.