Belgium-based Casa, a home furnishings retailer that also has several locations in Luxembourg, has placed itself under court protection due to mounting cash flow problems, according to a company statement.

The Casa home furnishings chain is facing significant economic difficulties and has sought court protection in Belgium due to cash flow problems that threaten its continued operation.

According to a company press release issued on Tuesday, Casa placed itself under the protection of the Belgian courts, where its headquarters are located. The move comes in response to "major cash flow issues" that jeopardise the company's future.

Under Belgium's judicial reorganisation procedure, companies can negotiate with creditors to restructure their debt and extend payment terms. Casa International initiated this process on 30 October before the Turnhout (village in Belgium) company court in the northern province of Antwerp, as reported by the Belga press agency.

Struggling amid competition

The chain is grappling with intense competition from industry giants like Ikea and the rise of e-commerce, all within a broader struggling market. As part of a recovery plan launched in early 2024, Casa has already closed or sold more than 10% of its roughly 400 stores across Europe, aiming to return to profitability by 2026.

However, the company explains that despite these efforts, its financial situation remains fragile due to a series of unfavourable developments in the retail sector. Casa acknowledged that these challenges have led to significant cash flow issues, which require immediate action to ensure the business's survival.

Casa employs over 2,500 people across eight European countries, including France and Belgium, where it operates approximately 150 and 60 stores, respectively. The chain also has eight locations in Luxembourg.