Insolvency report: Conen Group is fighting for survival in the furniture industry

Insolvency report: Conen Group is fighting for survival in the furniture industry

On February 25, 2025, the Concen group submitted bankruptcy application to the Wittlich district court. This means that the furniture manufacturer, known for its products for educational institutions and office space, faces a serious economic challenge. The announcement of the bankruptcy was as well as the appointment of the provisional insolvency administrator Tobias Wahl by Anchor Rechtsanwälte.

The Concen group consists of five companies: Conon Holding GmbH, Conen Products GmbH, Conen Real Estate GmbH, Conen Systems GmbH and Möbelwerke Niesky GmbH. The company's headquarters are located in Morbach-Gonzerath near Trier, while other locations are located in Paderborn and Borchen. Despite the bankruptcy, business companies continue to run unchanged at all locations.

economic difficulties and causes

The Conen Group, which was founded in 1960, recently determined sales of 64 million euros. In recent years, however, the company has fought with considerable economic difficulties that were caused by several factors. This includes a decline in US business, the lack of orders due to the "digital pact 2.0" in Germany as well as continuing pricing through competition from China. In addition, high interest rates and debts, which result from the takeover by the investment company Halder in 2019, contributed to the current crisis situation.

Tobias Wahl, the insolvency administrator, emphasized the need to maintain functioning production and to secure contracts with suppliers and customers in order to win a new investor. The company has around 225 employees, whose salaries are secured by bankruptcy money from the employment agency.

industry context and trends

The situation of the Concen group reflects a larger trend within the furniture industry, which also experienced significant challenges in 2024. The sales of German furniture manufacturers dropped by 7.4% to 16.4 billion euros. The industry recorded an increase in bankruptcies, with over 230 cases reaching a new ten-year high. High living costs and a weak consumer climate have led to households reducing their expenses, considering furniture purchases as less urgent and increasingly investing their money in trips and leisure time.

The prospects for 2025 remain dark, with forecasts that predict an increase in bankruptcies in the furniture industry by 20%. The Concen Group is also faced with the pressure to continue its restructuring measures, which were already initiated at the end of 2024 as part of the bankruptcy proceedings.

The current situation of the Concen Group underlines the challenges in front of which the furniture industry is standing and shows that the most successful path forwards is the development of solid, sustainable solutions within the framework of the ongoing investor process.