Alinéa Faces Judicial Restructuring: 1,200 Jobs at Risk in France’s Struggling Furniture Sector

Alinéa Enters Judicial Restructuring: A Repeat Crisis for French Furniture Giant

On November 20, 2025, Alinéa, a leading French furniture retailer and part of the Mulliez group, was placed under judicial restructuring by the Marseille Commercial Court. This move puts 1,200 jobs at risk and casts uncertainty over the future of its 36 stores across France. It marks the second time in five years that Alinéa has faced such a crisis, following a similar situation in 2020 during the pandemic.

What Judicial Restructuring Means for Alinéa

Judicial restructuring allows a company six months to present a recovery plan before a final decision is made. For Alinéa, the stakes are high: in 2024, the company reported a net loss of €47 million on revenues of €162 million, far below the profitability targets set during its 2023 transformation plan. This plan included converting several Zodio stores into Alinéa outlets and boosting European-made products.

The Broader Crisis in France’s Furniture Sector

Alinéa’s troubles reflect a wider downturn in the French furniture market. In 2024, the sector saw a 5.1% decline in sales, driven by a slowdown in the housing and construction industries. With a third of furniture purchases tied to moves, the housing slump has hit retailers hard. According to recent forecasts, the French furniture market is expected to reach $19.5 billion in 2025 but faces continued pressure from economic headwinds and shifting consumer habits.

Intensifying Competition and Changing Consumer Trends

Alinéa is also battling fierce competition. Ikea remains the dominant player, while new entrants like Temu, the Chinese e-commerce giant, have captured 9% more market share since 2023 by offering low-cost options. With household budgets stretched, many consumers are postponing big-ticket purchases such as sofas and living room sets.

A History of Restructuring and Uncertain Recovery

Alinéa first entered judicial restructuring in 2020, losing 17 stores and nearly 1,000 jobs. The company was saved by its shareholders with government support, but this time the outlook is less clear. Union sources say management hopes to find buyers, but confidentiality surrounds the process, and there are fears that any acquisition might be partial, leaving some stores and jobs vulnerable.

Market Trends and Future Outlook

The French furniture sector is undergoing significant transformation:

Sustainability and Innovation: Consumers increasingly demand eco-friendly and multifunctional furniture, with plastic and modular pieces showing strong growth.
E-commerce Surge: Online sales are booming, with Amazon, Cdiscount, and Ikea leading the digital shift. Virtual shopping experiences and smart payment systems are becoming the norm.
Urbanization and Space Efficiency: Smaller living spaces and urban lifestyles are driving demand for space-saving, multi-purpose furniture.

Despite these trends, the sector continues to face headwinds, including rising costs, supply chain disruptions, and cautious consumer spending. The future of Alinéa will depend on its ability to adapt to these changes and secure new investment.