Furniture manufacturing company OFD placed in voluntary administration
An office furniture company turning over more than $6 million a year has been placed in administration following the death of the company's managing director.
The collapse comes during a volatile period for the furniture market, with both residential and commercial furniture chains under pressure. Earlier this year, furniture chain Sleep City shut its 64 stores after being placed in administration.
BRI Ferrier principal and joint administrator Martin Green told SmartCompany this morning the administrators were called in shortly after the managing director passed away.
"The wife of the managing director has made the appointment," he says. "She decided she couldn't manage the business, and the best way to go forward was to appoint administrators to take over and try and conclude a sale process."
The company has been operating as a family business since 1977 and maintains a manufacturing facility in New South Wales, as well as a factory bay and logistics equipment including fitted trucks.
It also maintains several contracts with state and federal governments and turns over more than $6 million a year.
Green said while the main reason for the appointment was the death of the managing director, harsh market conditions also played a part.
"There is no doubt the business has been under some pressure for some time, but it is doing reasonable business and I'm sure a prospective buyer will find it a great addition."
He also added he was "very confident" that a sale would take place.
Over the past few years, OFD has expanded to service the education market, along with its usual commercial contracts.
Experts have warned operators in the furniture industry need to change to reflect consumer values or they risk becoming irrelevant, especially as the housing market and new furniture purchases remain subdued.