The furniture and wood sectors in Poland are grappling with increasing debt, totaling 351.9 million zł. According to a report from the National Debt Register, furniture producers and retailers alone account for 135.7 million zł of this debt. The largest concentration of indebted companies is found in the Greater Poland region, although a notable record-holder is a business located in another area.
The report indicates that within the furniture segment, three-quarters of the total debt (100.4 million zł) is attributed to manufacturers. Wholesale and retail trade contribute an additional 35.3 million zł. The most substantial debts arise from manufacturers of living room, bedroom, and bathroom furniture, totaling 43.8 million zł. Currently, there are 3,091 furniture producers and retailers registered, with an average debt of 43,900 zł per company. Sole proprietorships are responsible for nearly 60% of the total debt.
Company from Lesser Poland Holds Record Debt
In total, the furniture industry owes 135.7 million zł, while the wood sector’s debt stands at 216.3 million zł. The wood industry includes 4,192 registered companies, with an average debt of 51,600 zł. The debt in this sector is nearly evenly distributed between wood product manufacturing (103.9 million zł) and wholesale trade of wood and building materials (99.8 million zł).
The data from the National Debt Register reveals that almost two-thirds (69%) of debts in the furniture sector are owed to financial institutions and securitization funds that purchase overdue receivables. In the wood sector, this percentage is 65%.
Examining the distribution of indebted furniture companies across the country, Greater Poland leads with 26.5 million zł in debts, followed by Mazovia with 20 million zł and Silesia with 11.7 million zł. In the wood sector, the largest debt is in Mazovia at 30.2 million zł, followed by Greater Poland at 26.9 million zł and Silesia at 21 million zł.
A remarkable case in the furniture sector shows a record debt of 2.35 million zł held by a manufacturer from Lesser Poland. In the wood sector, the record debt is 2.76 million zł, attributed to a sole proprietorship in Pomerania involved in wood product manufacturing.
The study also highlights that businesses in the wood and furniture sector have their own debtors, collectively owing 133.5 million zł, primarily from the industrial, construction, and trade sectors.
