In a surprising turn of events, the renowned furniture brand Habitat has announced the closure of all its stores, including the one located in Barcelona, leaving design and decoration lovers with a sense of loss.
The news, which comes on the heels of the company’s bankruptcy filing, marks the end of an era for a brand that was a pioneer in offering modern, refined furniture at affordable prices.
The decision to close Habitat’s 25 stores, located in France, Spain, Morocco and Switzerland, comes after the company filed for bankruptcy on December 28, 2023.
The financial situation of the brand became “irremediably compromised”, according to the commercial court of the French municipality of Bobigny, leading to the liquidation of the company, which employs around 400 people.
Barcelona, which is home to one of Habitat’s iconic stores on the corner of Diagonal and Tusset Street, is also affected by this unexpected closure. The store, which is likely to close later this month, will join the closure of other flagship locations around the world.
Financial decline of Muebles Habitat and accumulated losses
Habitat’s financial decline is evident in its turnover figures. In 2019, the company recorded revenues in excess of €100 million, but by 2021, this figure was drastically reduced to €64 million.
This sharp decline in revenues is even more pronounced when compared to pre-pandemic indicators, reflecting a worrying trend.
The owner, businessman Thierry Le Guénic, acquired Habitat in 2020 for the symbolic price of one euro paid to the Cafom group. However, it failed to reverse the brand’s financial situation, accumulating millions in losses.
Le Guénic, in a letter to AFP, admitted to having failed to overcome the challenges, despite significant investments in digital technology and the opening of outlets.
The situation of the furniture and decoration sector
The closure of Habitat is not an isolated case in the furniture and decoration industry. In an increasingly challenging environment, furniture stores are finding it difficult to compete with giants like Ikea and brands selling online.
Maison du Monde, another French company in the sector, has also experienced a decline in the value of its shares and has revised down its sales forecasts.
Increasing competition, combined with unfavorable economic factors, has led to a number of challenges for traditional furniture brands.
Habitat was founded in 1964 by British designer Terence Conran, and over the years has become a benchmark for modern, accessible design. Its goal was to offer sober, refined and contemporary furniture and decorative objects at affordable prices.
