Businesses were relatively doing well until financial crisis struck in 1997. It has changed the whole scenario of businesses in Malaysia. CS Furniture was one of the businesses affected and suffered by this incident. It was due to currency depreciation which affected the cost of its raw materials and lack of total demand for the furniture they manufactured. Thus, the company was unable to meet its financial obligations. By 1999, the amount of loans outstanding had increased to RM2.6 million in which later the loans were bought by Danaharta, the national asset management company. Even though the loans were restructured and the company had added new products to its product line, the company was still unable to increase its sales revenues. Since the company's financial burden became heavier each day, they must resolve the issue quickly or the company will be winding up.