Maxbo legger ned fire varehus

Maxbo, a home improvement chain in Norway, announced on Friday that it will close four stores, affecting 30 employees. The stores affected are in Trondheim, Dokka, Nesbyen, and Mandal. Maxbo's administrative director, Erik Muldorff Frellsen, stated that the company is committed to supporting the affected employees. However, it is not yet clear how many employees will lose their jobs as a result of these closures.

The company, which has over 60 warehouses and around 1,600 employees in total, consists of both owned stores and franchise outlets. Frellsen cited the long-term decline in the construction market as the reason for the decision. The construction market has been experiencing a severe downturn due to a significant drop in demand for building materials, resulting in excess capacity and pressure on profitability across the industry.

Maxbo has been making significant adjustments to its operations in response to the weaker market. The company made a decision to close the stores after evaluating its long-term strategy. The closures follow several rounds of layoffs in Maxbo. In December 2023, the company permitted around 100 employees, and in the fall, it issued new layoff notices to up to 60 employees.

These decisions were made due to the weak construction market and the sharp decline in the construction of new homes, with May home sales being 22% lower than the same month a year ago, according to figures from the Norwegian Builder Association.