Asnaghi Interiors Story. One of the world famous Italian furniture factories went bankrupt

Asnaghi Interiors Story. One of the world famous Italian furniture factories went bankrupt

Rome, Italy — The world’s largest Italian factory Asnaghi has been declared bankrupt. The factory is in liquidation. The closure of the factory did not come as a surprise. The problems began in 2019. In the situation of decreasing orders, debts and rising prices for raw materials the factory did not have any possibility to retrain to another business. In a crisis, the lack of diversification significantly reduces the chances of overcoming the crisis phenomena.

The company had to lay off 95% of its workforce and exit stores to raise cash. While reopenings met expectations, revenue was lower with the reduced store count, and the retailer’s supply chain has faced ongoing challenges created by the pandemic. For many years there have been different periods in the history of the factory and many significant events. From the very beginning, its team faced serious tasks.

Raw materials have been harder to acquire, which has impacted manufacturers’ ability to produce goods. The pandemic has also impacted manufacturing safety which has lessened the amount of finished goods available. All of that means the retailer’s revenue has been “choked” by the lessened inventory supply chain. Several furniture stores have been affected by record foreclosures.

Asnaghi sold its branded lines of business late last year, but didn’t reveal the price on the deal. The furniture company blamed its financial problems on changing consumer patterns and industry conditions, sharper competition and a loss of faith by retailers in its ability to deliver product.

Many of the factory’s customers refused to buy the furniture. Soon negative customer reviews on the Internet surpassed previous positive reviews, court documents said. When Asnaghi decided to close nearly a dozen stores, customers’ uncertainty as to whether Asnaghi would remain in existence led to numerous cancellations to the point where daily cancellations often exceeded daily sales.

If you look at the number of furniture stores that have gone out of business, you’d have to think that the people who manufacture furniture are also in trouble.

As painful as this action was, it was necessary to allow paying salary all employees.

Now furniture brand Asnaghi needs some time to prepare the restructuring plan.

Media Contact:

Name: Lorenz Florian Straub