Elvila group of firms, controlled by businessman Viorel Catarama, in the first four months of this year saw sales go down by around 10% from a year ago.

"The economic crisis felt on the entire market was the main factor behind the sales decline from the similar period of 2008. The constructions market decline as a result of the economic crisis is another factor that hurt the performance of the furniture market," said Elvila representatives, specifying RON depreciation and Romanians' shrinking purchasing power also hurt the business.

Elvila last year posted turnover worth 115m euros, up 3% from 2007 figures, below estimates that indicated a 7-10% advance, with the performance being influenced by consumption slowdown.

"The most downbeat scenario points to a sales decline by 15-25% compared with 2008," the company's representatives also said.

Whereas the first four months' decline came to 10%, Elvila expects the phenomenon to gain momentum during summer months. The company is not the only one in the furniture industry expecting major slumps in the following months. "The downward trend will maintain. The 10% decline posted in the first months is likely to maintain in the summer months, and it can even reach 15%," Elvila representatives also say.

The group controlled by Viorel Catarama in 2008 laid off around 450 employees, with its personnel reaching 1,700 people, but another 100 persons were made redundant in 2009, as well.

At the same time, Elvila representatives said, "all plants of the group halted part of their operations", without providing further details.

Elvila and Mobexpert are not the only furniture industry players that reported weak results at the beginning of the year. Thus, IKEA, the biggest domestic retailer, announced an increase by only 5% in RON in the first two months of this year, after the 50% sales advance re