Power failure at Hülsta, a furniture manufacturing company.
Following its second bankruptcy in a span of two years, the fate of furniture manufacturer Hülsta seems to be sealed. The business will be forced to close commencement of insolvency proceedings on June 1st was announced by the temporary insolvency administrator, Christoph Morgen in Stadtlohn. Morgen expressed regret over the matter and emphasized the efforts made by the workforce, which currently consists of 280 employees, in various restructuring projects in the past.
Hülsta (MWS Westfalen Werke NDS GmbH & Co. KG and the MWS Werke Westfalen GmbH) filed for insolvency with the District Court of Münster in mid-April. The business cited considerable sales loses and external factors such as the challenging market scenario that led to unprofitable trades.
In 2022 and 2023, Hülsta had previously gone through an insolvency episode and attempted to revive. Despite the support of investors, the company's hopes of reviving its success path were extinguished, causing the successor businesses to also fall into insolvency. The firm from Münsterland traces its history back to 1940, when Alois Hülser founded a furniture workshop in Stadtlohn. The name Hülsta is a combination of the surname of its creator and the location's name.
The furniture industry is facing hardships in the present times. Constrained spending by consumers resulted in a 4.3% decline in sales last year. The market for furniture pertaining to living, dining, and bedding witnessed a drop of more than 12%.
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Despite being located in the prosperous region of North Rhine-Westphalia, the furniture industry in Hülsta has been grappling with insolvency. The repeated bankruptcies of Hülsta and its successor businesses in 2022 and 2023 have highlighted the challenges facing the North Rhine-Westphalia furniture industry, which is also experiencing a decline in sales due to reduced consumer spending.
Source: www.ntv.de
