Furniture companies will go bankrupt
Companies that fail to pass on energy price increases to customers will go bankrupt.
The Forte Furniture Company was hit hard by cost increases already a year ago. At that time, component rates rose rapidly. As a result, product manufacturing prices rose by about 50 percent. Maciej Formanowicz, president of Meble Forte, explains that despite this, so far the company has managed not to translate these increases into prices. This year, however, is different. Energy prices are mainly responsible for the drastic increase in costs. Forte Furniture and many other companies will have to translate these costs into prices. Otherwise, they face bankruptcy. However, not all companies can afford to raise prices. Therefore, many bankruptcies are to be expected in the near future. Some companies will be able to survive by cutting costs and consolidating.
