On a sad background we move one step closer to realizing our strategy of becoming a "one stop shopping"-supplier.

At the beginning of 2020, Top-Line invested in Canett Furniture, as part of our efforts to offer our customers a complete range of quality furniture - "one stop shopping".

In collaboration with the other shareholders, we prepared a new strategic direction for Canett, where we wanted to develop our own models and designs to a greater extent, as well as change the focus of our sourcing from Asia to Eastern Europe.We fully experienced the consequences of the previous strategy of primary sourcing in Asia during the covid-19 period, when, among other things, the costs for freight exploded, just as delivery and transport times were greatly extended - all factors that have led to a high increased in the working capital needed for the stock.

The consequences of this unfortunately hit Canett Furniture hard on both liquidity and capital tied up for the old range from Asia, where the costs of container freight has been 8-10 times higher than normal.Completely in line with our plan for a new strategic direction, the opportunity arose, in March 2021, to take over ABC-Reoler Aulum A/S with the 2 brands, Quadrant and abc classic, all produced at the factory in Aulum.

Parallel with the acquisition of ABC-Reoler, we have been working on a number of new products to Canett, designed by e.g. Morten Georgsen, and the introduction of the "Dining Designed" concept on dining chairs, where the synergies between Canett and Top-Line become visible to our customers.The strategy has been successful and we are glad to note, that our new models and range from primarily European manufacturers has been well received by our Scandinavian customers.

At the same moment, we are unfortunately experiencing a furniture market, which is very quiet and described as the worst for more than 40 years, which is why we saw no other option than to declare Canett Furniture bankrupt. 

Split between companies
The bankruptcy has led to a split between the previous owners, where Top-line Møbelproduktion A/S have taken over Canett Furniture, and JJ Finans, Aarhus ApS has taken over ABC-Reoler. The split means that ABC-Reoler will once again be responsible for selling its own products in the market, ABC Classic and ABC Quadrant respectively. However, it is expected that, despite the split, a good corporation on sales with Top-Line will be continued in the future.

Permanent and safe future for Canett products, suppliers and customers
Top-line takes over all products, rights, customers, open orders, purchase orders and inventory, to secure the deliveries of the existing and new models on the shop floor by our retail customers as well as all promotions will continue as planned. Bjarke Østergaard Pedersen, CSO, states: "Despite the sad background, I am very happy that we have found a permanent solution for Canett and the many loyal customers and create some stability and security around Canett and the range in the future "Like the customers, we see great potential in the new range and the synergies that now can be realized in deliveries, the range and in the administration".

Good for the climate, customers and suppliers
To optimize the processes and minimize the transport between the locations, it is our plan to concentrate our logistic and warehouse functions in Poland. Sales and product development continue unchanged. Kirsten Johs-Mathiasen, who will continue to be responsible for the sales and product development of the product portfolio, states:

"It makes very good sense to gather our logistics and processing close to the factory, and at the same time have a LEAN setup that benefits our customers" and continues "we have been hit hard by the consequences of Covid-19, large inventories and a decreasing market for our old range, I am therefore very much looking forward to this new setup".

The customer service, order processing, etc. will transfer to the team in Møldrup, Denmark.

Upcoming period
In connection with the acquisition of the stocks, goods will continue to be shipped from Canett in Lemvig for a shorter period, but the plan is that the future range will be fully integrated into Top-line during the autumn 2023.We therefore ask for your understanding if you should experience minor delays or misunderstandings until we have the entire structure 120% in place.

Contact
For further information, please contact:
CEO, Claus S. Nørgaard (+45 20805801)
CSO, Bjarke Østergaard Pedersen (+45 20299110)
Head of Sales, Kirsten Johs-Mathiasen (+45 20989822)