The Czech furniture manufacturer MB Domus from Hranice in the Přerov region has filed for insolvency. The company, whose customers include the large chains XXXLutz, Möbelix and Asko – nábytek, owes almost 154 million crowns. This follows from the insolvency petition, which was pointed out by the HN.cz server. According to him, the Czech furniture manufacturer with almost 50 employees was caught up in the coronavirus pandemic, the war in Ukraine, the bet on the wrong supplier and the rise in material and energy prices.
Marek Beránek, a member of the company’s board of directors, told the server that the company had already gone bankrupt before the coronavirus pandemic. due to a bad production line for 100 million crowns. “The Italian company SCM delivered a technology that does not meet the promised capacities with a long delay. When we started production on it, we only reached 40 or 50 percent of the production capacity. And then came the covid, “he said.
Beránek claims that the company’s largest customer is the XXXLutz group, for which MB Domus supplies furniture to the Austrian market. When the shops closed again in Austria at the end of last year, he said, it further damaged the company. Last year, the company’s prices began to be negatively affected by rising prices of production materials and now the war in Ukraine. The company wanted to buy laminate from the Ukrainian factory cheaper, according to Beránek, about 20 trucks with paid goods remained in the war-torn country.
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The management tried to solve the situation by restructuring, but the bank did not agree. “We also tried the sale, but unfortunately we did not find a buyer,” Beránek told the server.
According to the latest published annual report, the company made a loss in 2020. With revenues of 177 million crowns, it ended up with a profit of minus 7.2 million crowns. In 2019, the company earned 205.5 million crowns and reported a net profit of 1.5 million crowns.
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