Yahoo Finance Oka Winds Down U.S. Business Amid Market Woes
MILAN — Known for capturing the essence of the British home, U.K. furnishings and accessories firm Oka is pulling out of U.S. territory amid a challenging market. Oka and a certain number of its affiliates initiated Chapter 7 bankruptcy proceedings in the Northern District of Texas Tuesday to wind down its business, the company told WWD.
The proceeding will see the company liquidate assets to repay creditors, and the company said the business strategy in the U.K. remains unchanged.
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“After extensive evaluation, it was determined that filing for Chapter 7 bankruptcy was the most viable option due to the ongoing challenges to establish the business in the U.S. region. This decision was made at this stage to ensure an orderly wind-down of operations and to manage financial obligations responsibly. [Oka’s focus is] on continuing to invest in growing its core market in the U.K.,” the company said in an email.
Oka is an omnichannel direct-to-consumer business, operating oka.com as well as 13 stores across the U.K., and has been operating three stores in the U.S. The firm was started in 1999 by Lady Annabel Astor, interior designer Sue Jones and horticulturalist Lucinda Waterhouse. In 2018, Oka’s private shareholders sold the company to European investment house Investindustrial. Astor resigned from the company’s board of directors in May, the company confirmed. Investindustrial also jointly controls Italian furniture, kitchens and lighting firm Flos B&B Italia Group (formerly Design Holding) with The Carlyle Group.
Most recently, American fashion designer Adam Lippes made his foray into the world of furnishings with Oka in April, with three collections, one of which included pieces for the study, such as a set of nesting tables and a desk.
Sector-wide, furniture and home decor firms have been hit by the real estate slowdown, especially in the U.S. According to the National Association of Realtors, existing home sales in the U.S. fell to their lowest level in nearly 30 years in December. In April, the median existing-home price for all housing types was up 5.7 percent to $407,600 from the previous year.
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