EMCC European Monitoring Centre on Change

Zala Bútor

Zala Bútor

Geographic Location

Country: Hungary
Region: Zala; Nyugat-Dunantul; Dunantul
Location of affected unit(s): Zalaegerszeg


Sector: Manufacturing
Other manufacturing, and repair and installation of machinery and equipment
31 - Manufacture of furniture
Number Employed: 153

Employment Effects

Announcement Date: 09-02-2007
Planned Job Reductions min: 153
Planned Job Reductions max: 153
Type of Restructuring: Bankruptcy/Closure
Foreseen End Date: 30-04-2007
Direct Dismissals: 153

Additional Information

Hungarian furniture maker, Zala Bútor Zrt., is to stop its production by the end of April 2007, after 50 years of operation. The company has been focusing on producing natural wooden furniture for family homes and for hotels. Zala Bútor had as many as around 600 employees 10 years ago but due to raising prices of raw materials, shortage of orders and increasing competition, the company had to lay off employees and stop production. The company concluded only 1 contract with a customer in previous months and all 153 employees will be laid off after the contract is terminated at the end of April.