Romanian furniture company Taparo on the brink of bankruptcy following production halt
Two major Chinese companies, Long Bamboo Group and UE Furniture, are making a significant entry into Romania's furniture industry, potentially reshaping the market dynamics. Long Bamboo Group, headquartered in Hong Kong with operations centred in Nanping, has begun local production in Romania, according to Profit.ro. The company supplies bamboo products to international retailers, including IKEA. UE Furniture, a Chinese company listed on the Shanghai Stock Exchange, is already an established player in the Romanian furniture industry, producing chairs for IKEA in Oraștie. Taparo, a Romanian furniture manufacturer and one of the country's largest exporters, has requested bankruptcy proceedings from the Maramureș Court. The company, which employed an average of 863 people, entered insolvency in November 2024, following a series of layoffs. In the spring of 20XX, Taparo laid off its last 193 employees, following an earlier round of 379 layoffs in late 2023. The main drivers of Taparo's financial crisis are identified as liquidity blockages, the collapse of client relationships, and unsustainable personnel costs. The reasons for the bankruptcy petition include the complete cessation of Taparo's operational activity, lack of current income, the cessation of essential utilities, and collective dismissal of staff. Taparo supplied major international retailers such as IKEA, JYSK, OTTO, Argos, and NEXT. The increased interest from Chinese furniture stores in Romania's furniture industry may impact the local market dynamics, particularly as Taparo was delivering more than 80% of its production abroad. The entry of Long Bamboo Group and UE Furniture could potentially lead to changes in the supply chain and competition for existing manufacturers like Taparo. The increased presence of Chinese furniture manufacturers in Romania's furniture industry may have far-reaching implications for the local market.
