Polish furniture makers face mounting debt and bankruptcies

Poland's vital wood and furniture industry is struggling under the weight of rising debts and an increasing number of bankruptcies. Unpaid debts within the sector have surged to 352 million Polish zloty (PLN), with furniture manufacturers and sellers accounting for 135.7 million PLN and wood companies for 216.3 million PLN.

Industry leaders have appealed to the President and Prime Minister, accusing the Ministry of Climate and Environment of "destroying a pillar of the Polish economy." They cite the ministry's policies of restricting access to domestic timber and imposing greater burdens on the sector as the primary causes. These actions, they argue, are driving up production costs and leading to job losses.

“

We are dealing with a situation where the ministry is pursuing a policy that hits Polish companies, employees, and local communities. We can no longer watch the destruction of one of the pillars of the Polish economy.

Payment reliability among these businesses has sharply declined. The average unsettled debt for a furniture company is now 43,900 PLN, and for wood companies, it's 51,600 PLN. Consequently, 26% of furniture companies and 21% of wood companies are now considered outside the highest payment reliability zone, a significant increase from previous years.

Data from Coface reveals a stark rise in bankruptcies. In 2025, furniture production saw 82 bankruptcies, up from 70 in 2024 and 22 in 2021. The wood product manufacturing sector experienced an even greater increase, with 117 bankruptcies in 2025 compared to 85 the previous year and 33 four years ago. The industry warns that without intervention, this negative trend is unlikely to halt.

“

Already, every fourth furniture company requires greater caution when selling on deferred payment terms, and in the wood industry, one in five.