Chinese LJJ Home Furnishings Chain Ceases Operations

(Digital Phablet) July 24 — LJJ Home, a prominent home decor company with over 100 stores across South China, has paused its operations. The company has advised creditors to submit their claims and has begun bankruptcy proceedings.

The shutdown was driven by a declining real estate market in China, as stated in a notice posted at its physical store locations. The company also cited sustained losses leading to insolvency.

This news came as a surprise to many customers. Just earlier this month, LJJ was still holding promotional events. One customer shared with Digital Phablet that he was receiving services up until July 17, only for operations to halt unexpectedly the following day.

An industry insider explained to Digital Phablet, “Home furnishing companies are heavily dependent on a booming real estate sector, as they operate downstream in that market. Around 2020, when the sector started to decline, these companies didn’t fully anticipate how severe the subsequent downturn would be.”

It’s now increasingly common for well-known Chinese home decoration firms to face financial troubles. Last year, Dong Yi Ri Sheng Home Decoration Group had to suspend thousands of renovation projects, and just last month, Zhufaner halted work at hundreds of sites.

“Once these companies expanded rapidly, managing multiple renovation sites across residential communities became a major challenge,” a representative from a leading home decor firm told Digital Phablet. “The complexity of coordinating various projects makes it harder to maintain a strong brand reputation as these companies grow larger.”

Nevertheless, many smaller and medium-sized home decorators are still thriving in today’s market, thanks to their asset-light business models and swift capital movements, the source added.

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