The future for Alstons Cabinets looks bleak after entering a 90-day redundancy consultation process with its 130 staff. The company has blamed competition from imports and the slowdown in the housing market for a lack of profitability.

‘This has not been an easy decision to take, but like many manufacturers we have struggled against a tide of cheap, lower quality imports which has badly affected sales within a shrinking market for bedroom furniture. Despite reducing costs and improving its efficiency, the factory does not have enough orders to continue in its current form. During the consultation period we shall continue to explore all options available to us, including downsizing,’ says John Alston, Alstons Cabinets md.

The Ipswich company has made major efficiency gains in the past year, but this has not been enough to return to the black. Historically the factory needed to produce 3,000 units a week in order to break even. This was reduced to 2,500 units in March and the break-even figure has since been reduced to 2,200 units a week. However it only has firm orders of 1,400 units per week.

The group’s profitable upholstery division, which makes up three-quarters of group sales, is unaffected. The group says it ‘enjoys a healthy order book, with contracts in place with a number of leading high street retailers.’

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