After 110 years of distributing to-the-trade wall coverings and upholstery fabrics, the famiy-owned Brunschwig & Fils filed for bankruptcy last week due to a two-year significant decrease in consumer spending. Brunschwig's sales declined by 35% in 2009 and 30% in 2010. It's listed assets are $10.9 million, with debt totaling $18.4 million.
Competitor Kravet, also a family-run company and nearly a century-old, offered to buy the company for $6.5 million cash plus the cost of curing defaults on leases and contracts. Other offers will be accepted through March 3, with an auction two days later, according to a report.
"The restructuring is a business decision that will not affect the quality of our products, or present and future orders. This restructuring will improve our services and supply chain flow. Our relationships with the lines we represent remain intact and the Brunschwig & Fils Design Studio is creating new patterns for future release," said Olivier Peardon, Brunschwig President and Chief Executive Officer.
With 17,000 fabrics and 1,200 wall coverings, Brunschwig owns and operates 17 showrooms in the U.S. and three abroad. It runs under the direction of Chairman of the Board Thomas Peardon and CEO Olivier Peardon.