A furniture superstore is about to completely wind up its manufacturing operation in Australia and move overseas.
Fantastic Furniture will import its furniture from China and Vietnam after its last local factory in Sydney closes on Friday.
About 100 people are employed at the Fairfield East factory, which makes 25 per cent of the loungeroom range but just 6 per cent of the company’s products overall.
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The furniture store which still has more than 80 stores across Australia was acquired by Allegro in May.
Fantastic Furniture has been manufacturing locally for 35 years but will now pivot to ensure continued growth.
“Moving to a global supply model supports the long-term commercial sustainability of our business and gives us the flexibility to continue investing in new, fresh product ranges for Australian customers,” a Fantastic Furniture spokesperson told 7NEWS.com.au.
“Our immediate focus is our people. We recognise the outstanding contribution our manufacturing team has made over many years and remain committed to supporting them through this transition, including retraining and redeployment opportunities, our employee assistance program, and outplacement services where applicable.”
The offshore move comes as financial factors cripple major Australian companies more widely.
David Jones, Australia’s oldest department store, is also in strife.
The luxury retailer has struggled to pay some of its suppliers and has recently lost major designer brands Christian Dior, Gucci and Chanel.
Retail expert Barry Urquart said the profit spikes expected over the Black Friday and Christmas period will not be able to save the department store, “only delay the inevitable”.
