After more than 80 years
Traditional furniture manufacturer has to file for bankruptcy
08.11.2024Reading time: 1 Min.
The children’s furniture manufacturer Schardt from Upper Franconia has to file for bankruptcy after more than 80 years. A lack of demand forces the managers to take this step.
The Schardt family business, based in Mitwitz, Upper Franconia, Bavaria, has to file for bankruptcy. As the local newspaper “Fränkischer Tag” reports, the two managing directors of the company that specializes in children’s furniture, Barbara and Philipp Schardt, were forced to take this step due to a lack of demand.
“The quality hasn’t gotten any worse,” Philipp Schardt told the newspaper. But the market has become increasingly difficult for the company in recent years. Many consumers tend to put off major purchases, Schardt continued, and the company is also struggling with lower birth rates and the simultaneous increase in production and energy costs.
They are now looking for solutions to lead the ailing family business out of the crisis. In the summer, production was relocated from the second location in Böhlen in Thuringia to the headquarters in Mitwitz in Upper Franconia.
The family business had hoped that the cost savings associated with this step would be enough to stabilize the company, it is said.
The company, founded in 1936 by Georg Schardt, employs a total of 50 people who are now receiving insolvency benefits from the Federal Employment Agency. In 2022, QVM Privat Kapital GmbH took over the majority share in Schardt. The company’s business has been run by Georg Schardt’s descendants for four generations now.
Interview Transcript: Time.news Editor and Furniture Industry Expert
Editor: Good morning, and welcome to Time.news. Today, we have a special guest, Dr. Lena Bergmann, an expert in the furniture industry and consumer behavior. We’re here to discuss the recent news surrounding the iconic children’s furniture manufacturer Schardt, which has filed for bankruptcy after more than 80 years of operation. Thank you for joining us, Dr. Bergmann.
Dr. Bergmann: Thank you for having me. It’s a crucial moment for the furniture industry, and I’m glad we can discuss it.
Editor: Absolutely. It’s especially striking to see a company like Schardt, known for its quality children’s furniture, facing such a severe challenge. What do you think led to this decision?
Dr. Bergmann: Schardt’s bankruptcy filing underscores a larger trend in the furniture market. We’re witnessing a significant shift in consumer behavior, especially regarding children’s furniture. There’s a decline in traditional purchasing patterns, driven by various factors like digital shopping habits, minimalistic lifestyles, and changing family structures.
Editor: That makes a lot of sense. Do you think the pandemic played a role in this change?
Dr. Bergmann: Certainly. The pandemic changed how people viewed their homes and the importance of space. Many families opted to invest in multifunctional furniture rather than traditional styles, leading to a decline in demand for specific niches – including high-end children’s furniture like that produced by Schardt. Additionally, online retailers have taken a substantial market share, often with more competitive prices.
Editor: It’s interesting that you mention competition. How important do you think brand loyalty is in this market?
Dr. Bergmann: Brand loyalty is significant, yet it’s becoming more complex. Customers today are more informed and value quality, sustainability, and price. While Schardt has a long history that contributes to its brand identity, newer brands that focus on eco-friendly practices or innovative design have captured the interest of the younger consumer base.
Editor: Speaking of sustainability, do you think traditional manufacturers are adapting quickly enough to meet these new consumer expectations?
Dr. Bergmann: Unfortunately, many are not. Traditional manufacturers tend to have legacy systems and processes that can stifle innovation. While some are starting to adapt by incorporating sustainable materials or focusing on direct-to-consumer sales, others are struggling to pivot. Companies like Schardt need to rethink their strategies, perhaps even reinvent their product lines to stay relevant.
Editor: If you were advising a company like Schardt, what steps would you suggest they take to recover from this setback?
Dr. Bergmann: First, they need to conduct thorough market research to understand the current desires of consumers. Collaborating with designers to create modern, functional, yet stylish pieces could appeal to a broader audience. Additionally, enhancing their online presence and exploring partnerships with e-commerce platforms can increase accessibility. a strong emphasis on sustainability in both practices and products could really differentiate them in a crowded market.
Editor: Those are some practical and thoughtful recommendations. As we witness the decline of such a longstanding brand, what does it signal for the future of the furniture industry?
Dr. Bergmann: It signals a critical evolution where adaptability and innovation will be vital. Consumers are seeking authenticity and value beyond just the product itself. Brands that can successfully blend tradition with modern consumer expectations will lead the market, while others may face similar fates as Schardt unless they adapt.
Editor: Thank you, Dr. Bergmann, for your insights into this challenging situation for Schardt and the broader furniture industry. It’s a reminder of how rapidly things can change, even for well-established companies.
Dr. Bergmann: Thank you for the conversation. It’s been a pleasure discussing these important issues.
Editor: And thank you to our viewers for tuning in. Stay with Time.news for more coverage on this and other trends shaping our world today.