A reorganization program is being launched at the Hungarian subsidiaries of the Austrian-owned ADA furniture group, ADA Hungária Kft. and ADA Nova Kft., after the parent companies, ADA Möbelwerke Holding AG and ADA Möbelfabrik GmbH, filed for bankruptcy protection at the Graz Regional Court on March 24.
According to the company, a structured reorganization process will begin at the Hungarian subsidiaries, aimed at ensuring the continuity of production, maintaining the operation of manufacturing units, and the long-term, orderly restructuring of the financial situation.
They emphasized that operations in Hungary are currently running smoothly:
the company continues to accept orders at its sites in Körmend (western Hungary), Zalaegerszeg (southwestern Hungary), and Nova Magyarország, and production is secured for both current and new orders.
According to the statement, the unfavorable market environment and the structural transformation affecting the European furniture industry were cited among the main reasons leading to bankruptcy protection. They noted that over the past three years, the company has taken several steps to lay the groundwork for future operations in order to remain competitive in the long term.
They wrote that the goal of the current reorganization is to preserve production capacity, maintain operational continuity, and ensure long-term stability.
They added that the Hungarian subsidiaries will keep their partners and employees informed in a continuous and transparent manner throughout the reorganization process.
ADA Möbelwerke Holding AG, headquartered in Eastern Styria, is Austria’s oldest furniture manufacturing group. Its offices and production facilities are located in Styria within Austria, as well as in Hungary and Romania.
Via MTI; Featured photo: Pixabay
The post ADA Furniture Group Launches Reorganization at Subsidiaries After Parent Bankruptcy Filing appeared first on Hungary Today.
