FRANCE - French furniture maker Demeyere, one of the country's largest furniture manufacturers based in Pérenchies (northern France), filed for court-ordered bankruptcy on December 1, hit by the health crisis and rising raw material costs.

The French furniture manufacturer was placed in receivership on Thursday, December 2, by the commercial court of Lille.

The company, which employs 850 people in France, including 750 in Pérenchies and 109 in Nersac (Charente), has always maintained its activity in France.

The company reported a 170% increase in the cost of its basic material, wood, a 50% increase in the cost of aluminum and a 30% increase in the cost of cardboard packaging.

"This will give us the means and the time to find the best solutions for the company and its employees as part of a search for buyers," said Jean-Marc Bailleux, the company's CEO since July 2021.

With a turnover of €105 million in 2020, the family-owned company, based in northern France, where its largest factory employs 625 people, was already struggling before the Covid-19 epidemic, according to its managers.

The observation period Demeyere enters to find a buyer could last less than the legal six months, as the company has only three to four months of cash on hand, according to the unions. The first follow-up hearing is scheduled for January 5.