Fantastic Furniture to shut last Australian factory, putting 100 jobs at risk

Australian furniture retailer Fantastic Furniture is closing its last manufacturing facility in the country, putting around 100 jobs at risk as the company shifts production to overseas markets. 

The Fairfield East factory in western Sydney will cease operations on 30 October 2026, ending the retailer's 35-year history of local manufacturing.

The company will move to an import-based supply model, sourcing furniture from China and Vietnam, according to reports by 7NEWS and The Australian. 

The closure will affect employees working at the Sydney facility, which manufactures a portion of the retailer's lounge furniture range.

The factory currently produces around 25% of Fantastic Furniture's lounge products, but accounts for only 6% of its overall product range. 

The company operates more than 80 stores across Australia and was acquired by Allegro in May 2026.

The closure marks a significant change for the retailer's manufacturing workforce, with approximately 100 employees facing uncertainty as local production comes to an end.

Fantastic Furniture said it recognised the contribution of its manufacturing team and would provide support to employees during the transition.

“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.

The company said its immediate priority was supporting affected employees through the transition, including exploring opportunities for retraining and redeployment.

“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 decision comes amid increasing pressure on Australia's retail and manufacturing sectors. 

Rising operating costs and a deteriorating retail environment have contributed to the company's decision to move production offshore.

Fantastic Furniture has been manufacturing locally for 35 years, having established its presence in the Australian furniture market in 1989.

The transition to overseas sourcing reflects a shift in its operating model, with the company citing commercial sustainability and greater flexibility to invest in new product ranges as key reasons for the move.

Fantastic Furniture's decision comes amid wider challenges in Australia's furniture and retail markets.

Furniture retailer Nick Scali recently warned of weaker trading conditions as households reduced discretionary spending. 

The company reported that store traffic across Australia and New Zealand had fallen by around 10% compared with the same period last year, while written sales orders declined by 15%.

Nick Scali expects first-half FY27 revenue across Australia and New Zealand to be 11% to 14% lower than the previous corresponding period. It has also forecast first-half net profit after tax of between $28 million and $32 million.

For Fantastic Furniture's manufacturing employees, the factory closure marks the end of local production at a facility that has supported the retailer's operations for decades. 

While the company has outlined retraining and redeployment support, the transition leaves workers facing uncertainty over their next employment opportunities.