More than a dozen Dongguan exporters filed for bankruptcy in the US

 

Recently, the United States large furniture business Furniture Brands International, Inc (hereinafter referred to as the FBI) presented a bankruptcy petition. At least 15 Dongguan exporters were severely affected by the incident and suffered heavy losses.

 

 

Centennial store FBI filed for bankruptcy

 

Recently, the FBI applied for bankruptcy protection in the US Bankruptcy Court in Delaware in accordance with Chapter 11 of the US Bankruptcy Law.

 

FBI is a furniture company with a history of nearly 100 years. It integrates design, procurement, manufacturing and sales. It sells different types of furniture through multiple brands. The number of employees exceeds 9100. According to the IBIS database, the group's total sales in 2012 were around US $ 1,072 million, with a market share of approximately 3%.

 

According to people familiar with the industry, the previous subprime mortgage crisis brought a major cleanse to the US furniture industry. About 30% of companies applied for bankruptcy protection or bankruptcy. Many companies closed stores and were in a state of loss.

 

Two insurance companies involved in the case about 2 million US dollars

 

FBI Group owns many well-known furniture brands , such as Thomasville, Lane, Broyhill. Dongguan has many furniture companies engaged in export. How will these companies be affected?

 

Chen Jian, head of the comprehensive department of the China Export & Credit Insurance Dongguan Office, said that according to the information held by China Export & Credit Insurance, FBI Group ’s annual purchase volume in Dongguan exceeded US $ 100 million, and at least 15 Dongguan exporters were severely affected by the incident and suffered Significant losses. In this case, two insured companies in Dongguan were affected, involving about $ 2 million. "Because of the confidentiality agreement, the names of these two companies are inconvenient to disclose. But what is certain is that these two companies are in Houjie and Gaobu." He said in an interview.

 

A staff member of the Dongguan Furniture Industry Association revealed that some Taiwan-funded furniture factories have been particularly affected. Among them, the well-known furniture company, Taisheng Furniture, may be the most affected foundry in Dongguan.

 

The US furniture industry is still difficult to recover in the short term

 

With the gradual recovery of the real estate market and the US economy, in 2013, the North American furniture industry as a whole showed an upward trend, and the demand for purchase orders rebounded significantly. However, in the furniture market that has been sluggish for the past five years, the operation and financial status of many large furniture manufacturers in the United States have continued to deteriorate, and their debts are high. It is still difficult to reverse the short-term recovery in the short-term.

 

Dongguan furniture exporters should take this as a guide and take cautious orders after fully assessing the customer ’s operating risks. If necessary, they can use credit insurance and other policy tools to investigate the customer ’s background and avoid risks, so as to avoid losing money due to blind orders Dilemma. (Editor: Peter)

 

Aluminum Fibreglass Composite Ceiling Tile

Aluminum Fibreglass Composite Ceiling Tile,Aluminium Ceiling Tiles,Aluminum Fibreglass Ceiling Tiles,Aluminium Composite Panel Cladding

Foshan Nanhai Lianxing Deli Decoration Materials Co.,Ltd , https://www.fstuodeli.com