German cabinet firm Wellemöbel — which entered into a restructuring process late autumn last year — is proposing a phased exit from the low-price segment.

The circa €96m furniture manufacturer is looking to cut costs after applying to a court in Paderborn for protection from creditors last November.

Under the German corporate system, companies can get a judge to approve a procedure that allows the existing management the time to restructure its business in partnership with a court-appointed administrator.

The plan to exit the cheaper end of the bedroom and office furniture market is one of several options on the table, along with a plan to discontinue existing, unprofitable lines.

Wellemöbel employs more than 900 people across three factories. Stakeholders will get the chance to vote on the restructuring plan later in March, with the whole process expected to be completed by the summer.