HERFORD, Germany — Citing a significant drop in orders and sales since the coronavirus outbreak, luxury cabinetry firm Poggenpohl Möbelwerke GmbH has filed for insolvency in Germany.
Founded in 1892 in Herford, Germany, Poggenpohl cabinetry is marketed in some 70 countries worldwide, including the United States and Canada. The company said it will continue to restructure as it searches for new investors. According to corporate officials, since Poggenpohl was in the middle of restructuring, it cannot take advantage of German economic aid for companies impacted by the coronavirus crisis.
“We would like to reassure you that insolvency does not mean the Poggenpohl story is over and that our working relationship has come to an end,” Managing Director Gernot Mang said in a letter to retailers. “On the contrary, we aim to keep the company and the Poggenpohl brand going and to place even more focus on you, the independent dealers and distributors, as our most important sales channel.
“Our relationship with you is crucial for the success of this search for investment. Even more so, it is an essential element of getting Poggenpohl back on track,” he added. “We are therefore asking you to stick with us during these difficult times and for us to continue on this path together.”
According to company statements, Poggenpohl’s business had been relatively stable following the restructuring of the company over the past two years. “As a result, the order books for the second half of the year are also well filled,” Mang said. “As part of the insolvency proceedings, the aim will therefore be to continue the restructuring of Poggenpohl and preserve the company as well as the brand.”
Have something to say? Share your thoughts with us in the comments below.