Fantastic Furniture to Close Final Australian Factory, Shift Production Overseas

Fantastic Furniture will close its last Australian manufacturing facility on Friday, marking the end of local production for the well-known furniture retailer. The Fairfield East site in Sydney's south-west, which employed 100 workers, will cease operations as the company transitions to a global supply model.

This strategic shift is aimed at ensuring the long-term commercial sustainability of the business. Manufacturing of the affected lounge range, which previously accounted for a quarter of the retailer's lounge stock and about 6% of its total inventory, will be relocated to China and Vietnam. A spokesperson for Fantastic Furniture stated that the move provides flexibility to continue investing in new product ranges for Australian customers.

The company emphasized its commitment to supporting the affected employees through this transition, offering retraining and redeployment opportunities, an employee assistance program, and outplacement services. "We recognise the outstanding contribution our manufacturing team has made over many years," the spokesperson said.

This decision comes after Allegro Funds acquired Fantastic Furniture earlier this year from Greenlit Brands, formerly known as Steinhoff Asia Pacific. The acquisition was part of Greenlit Brands' broader divestment program of its Australian retail portfolio. The move has reignited calls for fairer import duties and increased support for Australian manufacturers struggling with rising local operating costs.

The furniture industry in Australia has faced challenges recently. Rival retailer Nick Scali recently warned of a significant drop in profits, citing difficult market conditions and a downturn in the Australian housing market. Fantastic Furniture, founded in 1989, grew from a market stall to become a major retailer with nearly 90 stores across the country. It was rescued from administration in 1996 by Peter Brennan, Peter Draper, and Julian Tertini.