A Number Of Bathroom Cabinet Companies Around The World Have Ceased Operations, Gone Bankrupt, Transferred Equity And Laid Off Staff ……
At present, countries around the world have introduced preventive and control measures, and the new crown pneumonia epidemic is gradually stabilizing in most regions, but the impact of the epidemic on the global economy continues. Recently, a number of bathroom and cabinet companies around the world have gone bankrupt, laid off staff and divested themselves of other businesses. Among them, including more than 90 years Germany Alno Aino cabinet, Spain Roca Group, the United States cabinet business Corsi Group, the United Kingdom bathroom business Cassellie. many Chinese bathroom enterprises also said that the first half of the order surge, but did not earn money. In the current global economic situation, the industry’s development prospects, how the next step for enterprises to take, it is worth thinking about enterprises.
German cabinet brand Neue Alno will end its operations at the end of September after failing to find a new buyer following its bankruptcy
Recently, Neue Alno, a German kitchen manufacturer founded in 1927, has failed to find a new investor and the management has announced that the company will end its operations at the end of September. This means that 230 employees at its Pfullendorf factory will lose their jobs and the management has said that it may set up a forwarding company to help the employees find new jobs.
The company said that existing orders would be fulfilled by the end of September, following negotiations with customers. Management, led by joint managing directors Michael Spadinger and Jochen Braun, said, “Despite extensive talks with potential investors, unfortunately no investors could be found. Due to the economic situation, the business cannot continue on its own.”
Three years ago, the British investor Riverrock took over Neue Alno GmbH without debt. However, among other things, the management failed to invest in new production facilities. The local mayor has called it a disaster that Neue Alno will be forced to end its operations.
British bathroom company Cassellie in receivership after bankruptcy, 35 redundancies
On 8 September, Leeds, England-based bathroom supplier Cassellie declared bankruptcy and was put into receivership, along with 35 redundancies, following supply chain disruptions and trade disruptions caused by the New Crown pneumonia outbreak.
Previously, the company had been looking for a buyer, but without success. Now, Clare Boardman and Adrian Berry, senior managing directors of Teneo Restructuring, have been appointed as Cassellie’s insolvency administrators.
The brand’s products are supplied to a variety of independent and national bathroom retailers and distributors, offering a comprehensive range of products from baths, showers and basins to accessories. Co-administrator Clare Boardman said: “This has been a very challenging time for all shareholders and in particular the staff of Cassellie. Despite the best efforts of the directors, the company has been unable to maintain its operations.”
“As a result, at the time of the appointment, we had no choice but to, unfortunately, make 35 redundancies. Our current focus is on supporting staff during this difficult period and trying to help meet the needs of our long-term customers in the short term.” The company will continue in receivership management for a short period of time as part of a managed winding up program.
Roca Group Spain completes divestment of tile business
Grupo Lamosa (Mexico) recently completed the acquisition of Roca Group’s tile business for approximately US$260 million. The transaction between Grupo Lamosa and Roca was approved by the General Meeting of Shareholders and will be financed by a US$200 million bank loan for debt. This involves seven banks with an average duration of 4.3 years and a maturity date of five years. The remaining part of the amount will be financed by the La Mossa Group’s own funds.
It is worth noting that this business acquisition also includes the Roca Group’s INCEPA, USCT and GALA brands. As previously reported by foreign media, the transaction involves the transfer of two factories of the Roca Group located in Campo Largo and São Mateus do Sul in Brazil and the Spanish subsidiary Cerámicas Belcaire located in Castellón. it is after the completion of the acquisition that the Roca Group’s tile business in Spain is divested.
Caesar Sanitary Ware Vietnam factory. Porcelain capacity forced to drop by 50%, taps by 60%
Hsiao Jun-xiang, chairman of Caesar Sanitary Ware, a bathroom brand in Taiwan Province, recently revealed that Caesar Sanitary Ware’s Vietnam factory was reduced by 29% in July because of the impact of the epidemic in Vietnam. In August, there was an even bigger drop of 60%. It is expected that in the third quarter, the performance in Vietnam will drop considerably. Xiao Junxiang said that Ho Chi Minh City is under a state of closure, requiring people not to step outside their homes. Everyone’s food and drinks are brought to them by the army. Danang and Hanoi also have a curfew after 6pm and people are not allowed to leave their homes. The overall epidemic in Vietnam does not appear to be under control at all, and although the Vietnamese government has announced that the city will be closed until September 15 and will not improve before opening, the consequences are unpredictable.
Kaiser Permanente has more than 1,400 workers in Vietnam, but many of them are reluctant to work in the factory due to the implementation of the “three localities”. Xiao Junxiang pointed out that the porcelain factory’s current production capacity has dropped by 50% and the faucet factory by 60% compared to normal levels. The number of employees in the bath cabinet factory is even more than 16 from the original 70 people, and the production capacity has plummeted by more than 70%. However, because of the safety stock production in the past, despite the epidemic, the porcelain factory can still supply about 2.5 months and the leading factory about 3 months, but the bath cabinet factory is very short. Although the maximum monthly production capacity has increased from 2-3,000 in the past to nearly 7,000, there is no one to produce, but fortunately, there are 2 co-operative manufacturers in Taiwan who can be added as reserve factories. Taiwan’s revenue will not be affected, but Vietnam will be more seriously affected.
In addition to the factory in Dong Nai, there are also branches in Ho Chi Minh, Da Nang and Hanoi. Hsiao pointed out that the Ho Chi Minh branch has not even had a dollar of turnover for a long time, while Da Nang and Hanoi are open and closed, although there is still some slight turnover, the overall third quarter of Vietnam will be quite unpromising.
Polish Plumbing Hardware Company Capricorn SA To Be Acquired By Finnish HVAC Giant Uponor
Finnish HVAC giant Uponor intends to acquire all the issued shares of Polish plumbing and hardware company Capricorn SA. However, no details of the transaction have been disclosed and the acquisition is expected to be completed within the next few months.
In 2020, Capricorn will have net sales of close to EUR 25 million and will have around 400 employees. Upon completion of the transaction, Capricorn will be integrated into Uponor’s European building solutions, Capricorn SA is a Polish manufacturer of heating and sanitary equipment components. According to reports in the press, Uponor’s acquisition is linked to the difficult development of its joint venture company Phyn LLC, a smart water solutions company. They intend to improve market access in Poland and Eastern Europe by withdrawing from Phyn LLC and at the same time by acquiring Capricorn.
Wow ownership of US cabinetry business Corsi Group transferred to Mark Earl
US cabinetry company The Corsi Group has announced the transfer of ownership of the company from Pat Corsi to Mark Earl, who will act as an advisor to The Corsi Group during the transition period. The transfer is effective on 31 August and the terms of the transfer will not be disclosed.
Pat Corsi, the founder of The Corsi Group, said: “It has been a privilege to work with some of the finest employees, suppliers, sales representatives, distributors and designers in the cabinetry industry over the past 48 years. I know Mark will take the company to new heights and I have every confidence that the management team will function well with his process-oriented approach.”
The Corsi Group has been manufacturing bespoke cabinets for 48 years. The company’s two brands, Greenfield Cabinets and Siteline Cabinets are distributed to approximately 500 dealers/designers throughout the United States. All cabinets are manufactured in the company’s two facilities located in Indianapolis, Indianapolis and Elkins, West Virginia.
Orders soar for Jiangmen sanitary ware companies, but no money made?
A few days ago, kitchen and bathroom information was held in Jiangmen, “the 15th China Kitchen and Bathroom Industry Summit Forum Jiangmen production area preparatory meeting”. Many sanitary ware enterprises reflect, because of foreign epidemic prevention and control, the industry chain is interrupted, and orders back to the flow. In the first half of the year, there was a surge in orders. In the case of rising costs of raw materials and other costs and shortage of containers, enterprises did not earn much profit. Individual companies even appeared to refuse orders in order to reduce production pressure.
In the context of the global situation of the new crown pneumonia epidemic is still severe, the supply chain of the bathroom industry chain exposed the vulnerability of the impact of multiple factors such as rising raw material prices, container shortages, soaring shipping costs, the cost of enterprises rose sharply, but also brought a very large production and management risks and challenges. How to pass this epidemic, enhance the ability of enterprises to resist stress and cope with risk, sanitary ware enterprises need to do the next step in thinking.