Casa declares bankruptcy with more than 500 jobs at stake

Belgian home decoration and furniture retailer Casa has declared bankruptcy, directly affecting 63 stores and 544 jobs.

The bankruptcy comes after a period of financial difficulties for the brand, which underwent reorganisation in October 2024 due to significant cashflow problems that threatened the continuity of its activities.

Despite those restructuring efforts and hopes of improvement during the holiday season, the company was unable to turn its financial situation around.

Casa was created in Belgium in 1975 and until recently still had about 400 shops in eight European countries, employing some 2,500 people.

Its closure is part of a broader trend as traditional chain stores face competition from online shopping and changing consumer habits.

“The European decoration market has faced unfavourable developments that have weakened Casa even more,” the company’s management said, with chief executive Vincent Nolf thanking employees for their “efforts, energy and dedication”.

Vlerick Business School professor Gino Van Ossel said the store could not compete with online shopping and new low-cost competitors such as Action and Temu.

“The home retail sector in the broad sense isn’t doing well,” Van Ossel told RTL.

“There was the pandemic, when everyone invested in their homes, but shops like Casa were closed at the time. High inflation followed and consumers postponed purchases for decoration, for example. And those who do buy are opting for the cheap stuff.”

In Belgium, the sector has more than 700 companies and generates almost 10,000 jobs with an annual turnover of about €2 billion.

Competition is also coming from other shops that have home decor sections even if it is not their primary focus.

“For example, we have H&M, which has a home department, we have Primark, which has opened a home department, and we have Action,” said Virginie Eischen, a retail marketing coordinator.

Decoration and furniture companies have had to modernise to survive increasing competition, with some choosing to invest in training for employees and a better customer experience.

But even still, there is little that they can do in the face of an increase in consumer options and a decrease in purchasing power.