A Winnipeg, Manitoba furniture manufacturer has said that supply chain issues are forcing it to close its production facilities in that city in a move that will affect 224 workers.
According to a company statement, DeFehr Furniture has announced “the very difficult decision to cease case goods manufacturing operations and shut down its production facility at 125 Furniture Park in Winnipeg, Manitoba as of Aug. 10, 2022.
“This wind down will be carried out in a controlled and orderly manner, and all obligations to suppliers and employees will be honoured as we work to complete and fulfil customer orders on hand.
“The decision to cease operations was the result of severe supply chain disruptions and raw material sourcing challenges over the past two years, combined with balancing the pace of price increases that were passed along to customers. Many of DeFehr’s raw material inputs are not only purchased by furniture manufacturers, but other home and building product manufacturing companies also compete to secure the same raw material inputs, which exacerbated supply shortages and have resulted in disruptions to production runs.
“DeFehr has a skilled workforce of 224 employees and will be offering support programs to help employees through this transition.
“On behalf of the DeFehr family, we want to express our gratitude and thanks to our employees for their contributions in manufacturing high quality furniture used in the homes of Canadians across the country.”
The company has been in business for more than 75 years.