Biznes Fakty
Black Red White. Austrian tycoon takes full control of BRW
The Austrian conglomerate XXXLutz has acquired complete ownership of Black Red White, the furniture producer based in Biłgoraj, as stated in an announcement.
The Austrian furniture powerhouse XXXLutz Group has obtained 50% of the shares, thus securing total control over the Polish Black Red White Group (BRW). The initial portion of the shares was purchased in the middle of 2022.
„The Black Red White Group will continue to operate independently and will specifically manage its furniture manufacturing businesses on its own,” BRW stated in the announcement.
„The parties have decided to keep the specifics of the agreement confidential. The acquisition of shares is pending approval from the appropriate competition authorities,” it added.
Black Red White CEO Discusses the Company’s Sale
The company noted that this transaction will lead to increased options, quicker availability, and improved pricing for customers. Additionally, BRW is expected to gain from XXXLutz’s established presence in both physical and online retail across 14 European nations.
BRW Group President Mariusz Sośnierz conveyed his confidence that joining the XXXLutz group will foster the company’s growth and enhance its position in the furniture sector.
Meanwhile, XXXLutz Group spokesperson Thomas Saliger highlighted the „challenging economic landscape within the industry” and the significance of physical retail complemented by a robust online presence.
Overview of XXXLutz
The XXXLutz company has been in operation for 80 years. It ranks among the largest furniture retailers globally, boasting over 370 furniture outlets in 14 nations, including Austria, Germany, the Czech Republic, Hungary, Slovenia, Slovakia, Croatia, Romania, Bulgaria, Switzerland, Sweden, Serbia, Poland, and Belgium. The company employs more than 27,100 individuals and generates an annual revenue of approximately 6 billion euros.
Black Red White from Biłgoraj has been in business for nearly 35 years. The founder and long-time proprietor of the company was Tadeusz Chmiel, who was regarded for many years as one of Poland’s wealthiest individuals.
BRW is recognized as one of the largest manufacturers and distributors of furniture and home décor products in Poland. The company leads a capital group that includes 82 of its own stores and a network of around 300 trading partners in Poland, employing over 5,000 staff, and exporting to 30 countries.
Layoff Strategy
On January 17 of this year, BRW revealed a plan to terminate 220 workers at the facility in Przeworsk (Podkarpackie Province). In the subsequent days, the company’s „Solidarity” union reported that job cuts had also begun in Biłgoraj (Lublin Province) and Mielec (Podkarpackie Province), with the Biłgoraj labor office indicating a rise in the number of individuals affected by group layoffs to 421 in the first half of this year.
Read also: A prominent Polish company is shutting down its factory. „Group layoffs” >>>
According to BRW’s financial results for 2023, sales revenue dropped from PLN 1.5 billion in 2022 to PLN 1.3 billion. The group primarily sold its products in the domestic market (PLN 950 million in revenue) and within the EU (PLN 338 million). From 2022 to 2023, the group’s gross loss increased from PLN 38 million to PLN 100 million, while the net loss escalated from PLN 47 million to PLN 90 million, and average employment decreased from 7,498 to 6,640 individuals. In 2023, the company did not distribute dividends.
The management attributed the decline in the company’s performance to economic instability and the macroeconomic climate, including elevated inflation and interest rates, as well as the rise in the minimum wage, which has led to increased personnel costs.
