In a Russian furniture factory bankruptcy, identify the manufacturing legal entity first, then separate its own materials, customer-supplied items, work in progress, finished furniture and third-party equipment. The factory brand, showroom seller and documented manufacturer may differ. One order may cover measurement, design, production, supply, assembly and installation, so it is not automatically only a sale or only a contract for work.
Manufacturer may not be seller
The contract, receipt and product label may identify different participants.
Materials have owners
Factory stock, customer-supplied material and paid components require separation.
Machinery may be third-party
Ownership, lease, finance lease and security produce different treatment.
Quick self-check
- Tax details of manufacturer, seller, measurer and payment recipient are recorded.
- Contract, specification, drawings, measurements, receipt, timetable and messages are collected.
- Raw material, cut parts, work in progress and finished items are separated by order.
- Ownership, lease, finance lease, security and serial number are checked for each machine.
- Warehouse, production ledger, customer orders and physical locations are reconciled.
Identify Manufacturer and Payment Recipient
Compare the contract, invoice, receipt, website, label, bank details and specification. A showroom or dealer may contract in its own name or act for the factory. Direct a monetary claim to the person that undertook production, delivery or repayment.
Raw and Customer-Supplied Materials
Board, timber, fabric, fittings, stone and components may belong to the factory, supplier or customer. Third-party material requires a contract, delivery record and individual identification. Mere storage at the debtor’s site does not determine title.
Work in Progress and Finished Furniture
Record each order stage: design, cutting, machining, assembly, packing or readiness for shipment. Bespoke items require dimensions, part marking and connection to a specification. Completion or transfer depends on the surviving set, cost and case decisions.
Machinery, Tooling, Vehicles and Software
Cutting centres, edge-banders, presses, vehicles, templates and software licences are checked by inventory and serial number. Leased or finance-leased equipment does not become factory property merely through use.
- record inventory numbers;
- reconcile contracts and payments;
- separate customer tooling;
- preserve software access;
- assess production-line continuity.
Customer Claims and Factory Sale
A customer proves payment, agreed result, completion stage and defects. Suppliers separately calculate delivered materials. A production-complex sale requires review of contracts, brand rights, equipment and stock included in the lot; continued manufacturing cannot be promised.
What a customer should do when furniture is not made
- Identify the contracting party. Compare the tax number in the contract, receipt and payment record. A factory’s bankruptcy does not automatically mean that an independent showroom selling its furniture is bankrupt.
- Record the breach. Preserve the delivery or production deadline, specification, drawings, messages and evidence of non-delivery. List anything already received separately.
- Choose the remedy appropriate to the contract. For a consumer sale of prepaid goods delivered late, Article 23.1 of the Russian Consumer Protection Law permits a new delivery deadline or a refund of the advance. Manufacturing and installation under a contract for work require a separate legal assessment and calculation: the label “bespoke kitchen” does not decide the contract’s legal classification.
- Send a written demand to the correct debtor. State the contract number, amounts paid, items received, breach, remedy and calculation. Keep evidence of sending and receipt. Messages to a designer do not replace a demand to the contracting party.
- Check the bankruptcy case. Find the court order, case number, current procedure and publication. Where registration of a monetary claim is required, a letter to the factory alone is insufficient: an application in the arbitrazh court bankruptcy case and service on the insolvency officeholder are required under the applicable procedure.
Documents and a hypothetical calculation
- the contract, appendices, specification, drawings and deadlines;
- receipts, bank records and payer and recipient details;
- handover records, a list of items actually received and defect evidence;
- the demand, response and evidence of sending and receipt;
- the bankruptcy court order, publication and separate calculations of principal and additional claims.
Hypothetical example: the order price is RUB 240,000, the advance paid is RUB 120,000, and no furniture is delivered. If the contract and chosen remedy require the entire advance to be refunded, the principal monetary claim is RUB 120,000, rather than the full RUB 240,000 order price. Penalties and losses require separate grounds, periods and limits. This illustrates a calculation, not an actual case or a guaranteed recovery.
This action guide was added on 21 October 2026 after checking Articles 100 and 142 of Law No. 127-FZ and Article 23.1 of the Russian Consumer Protection Law.
| Item | Review | Action |
|---|---|---|
| Factory material | Purchase and stock | Reconcile warehouse |
| Customer material | Delivery and identification | Prove title |
| Work in progress | Stage and specification | Record the set |
| Machine | Title, lease, security | Record serial number |
| Finished order | Payment and readiness | Select claim form |
Frequently Asked Questions
May a nearly finished order be collected?
Title to the specific identified set must be proved and transfer arranged within the case.
Does prepayment make the parts customer property?
Not automatically. Contract, production stage, supplied material and identification matter.
Will finance-leased machines be sold as factory assets?
Ownership, finance-lease terms, payments and return grounds must first be checked.
Can completion be demanded?
Performance depends on contract, stage, resources and case decisions; completion cannot be guaranteed.
How is this different from general factory bankruptcy?
Bespoke furniture requires particular attention to specifications, dimensions and links between parts and an individual order. These help establish what was made for the customer and who owns the materials.
Is waiting for the factory to answer the demand enough?
A demand records the chosen remedy but does not replace an application in the bankruptcy case. Check the procedure and publication at the same time to avoid missing the applicable deadline.
Legal Sources
- Article 100 of Law No. 127-FZ
- Article 142 of Law No. 127-FZ
- Article 23.1 of the Consumer Protection Law
- Federal Law No. 127-FZ.
- 2026 Amendments to Federal Law No. 127-FZ.
- Russian Civil Code Part Two.
- Russian Consumer Protection Law.
- Federal Bankruptcy Register.
Related guides: factory bankruptcy, leasing company bankruptcy and warehouse bankruptcy.
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BOOK AN INITIAL CONSULTATIONGeneral information as at 28 August 2026. Treatment depends on contract, participant roles, asset identification, production stage and insolvency procedure.