DeCoro closing down leather production
Company was a pioneer in China sourcing
Joan Gunin -- Furniture Today, January 16, 2009
SHENZHEN, China — Major leather upholstery producer DeCoro will be voluntarily liquidated, according to CEO Luca Ricci.
No details were released but Ricci's confirmation of the closure comes in the midst of a torrent of rumors this week, including an article posted on furnishingreport, a British-based Web site, which indicated DeCoro had ceased production.
"The assets are much bigger than the liability so we think we can make money and pay all our suppliers," Ricci told Furniture/Today. "We want to be correct and pay everybody.
"We have very good relationship with the government," he added. "Our lawyers will handle this matter."
As for the future, he said, "We will define soon what to do."
DeCoro had been experiencing difficulties due to tough global business conditions and reduced access to capital. In November, the company announced it had reached an agreement with China Construction Bank to provide capital for ongoing operations.
With the opening of DeCoro in 1997, Ricci was credited with revolutionizing the leather upholstery industry by basing his operations in China, resulting in huge savings on labor. A number of other manufacturers followed suit, setting up production offshore to cut costs.
Two facilities here totaling 2.9 million square feet produced Italian-style leather upholstery and motion seating.
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DeCoro to liquidate
Jan 26, 2009
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