Insolvency Leads to Nationwide Closure
Home and garden décor retailer Casa has officially closed all 13 of its stores across Portugal, following a declaration of insolvency. The Judicial Court of Sintra ordered the closure of the Portuguese operations on September 12, one day after a creditors' meeting. This decision marks the end of the brand's presence in the country, where it had operated for years with shops in cities including Lisbon, Portimão, Loulé, Guimarães, Matosinhos, and Aveiro.
The insolvency request was initially submitted on July 2 and subsequently declared by the court on July 14. At the time of closure, Casa employed 98 staff in Portugal and faced debts owed to more than 110 creditors, including banks such as BCP and Millennium, as well as various suppliers and service providers. More than 30 employees were directly affected by the closures.
Financial Difficulties and Market Pressures
According to reports from the business newspaper Jornal de Negócios, Casa recorded net losses of €1.6 million in 2024, with sales falling to €9 million. The company's financial struggles were exacerbated by an inability to secure new investors to turn the business around.
The difficulties faced by Casa have been largely attributed to fierce competition within the home and garden décor sector. The market has seen increased pressure from established rivals such as:
- IKEA
- Hôma
- Gato Preto
- Espaço Casa
- Conforama
Additionally, the rise of online retail platforms like Temu and AliExpress has further intensified the competitive landscape, impacting traditional brick-and-mortar retailers.
Broader European Context and Asset Liquidation
The closure in Portugal is part of a wider trend for the Casa group across Europe. The company's Belgian headquarters filed for bankruptcy on March 5, 2025, leading to the suspension of activities in that country. Stores in France and Luxembourg had also closed earlier in the summer, indicating a broader restructuring or winding down of operations for the international retailer.
To address its debts, Casa has initiated an auction of its logistical assets, which includes items ranging from shelving and barcode scanners to surveillance systems. This auction commenced on September 16 and is scheduled to conclude on September 30. Furthermore, remaining stock of furniture and decorative items is being sold off in several stores across the country to raise funds for creditors.
5 Comments
Muchacho
While the company's financial struggles and inability to secure new investment are clear, the timing and suddenness of the closures must be incredibly difficult for employees. There's a human cost to these economic shifts.
Bermudez
Absolutely devastating for the employees and their families!
Africa
It's a sad day for everyone affected by the closures, especially the staff. However, the financial figures indicate this was a failing business that couldn't adapt to market demands, making the insolvency somewhat predictable.
Mariposa
A clean break is better than prolonged agony.
Leonardo
Poor management clearly drove this company into the ground.