Background: Closed-loop supply chains are a concept in sustainability that refers to reusingraw materials and reducing waste to fulfill the global demands for sustainable action.While profit-driven organizations’ interest in closed-loop supply chains has increased, there arefinancial barriers that limit the integration of the economic and the environmental dimension of sustainability. This study investigates profitability factors along with the closed-loop supplychain activities in their potential for overcoming the financial barriers within the context ofSwedish furniture manufacturers.

Purpose: The purpose of this study is to examine closed-loop supply chains in their integrationof forward and reverse flows to achieve sustainability. The forward and reverse flows are investigated for factors of closed-loop supply chain profitability, within the context of the Swedish furniture industry.

Method: This explorative study follows an inductive approach using a qualitative case studymethod. Data is triangulated from primary and secondary sources in the form of semi-structuredinterviews with purposefully chosen case companies, and secondary reports. Following a content analysis, data is coded and analyzed within and across cases.

Findings: The study revealed seven financial barriers and a large range of profitability factorsthat help overcome financial barriers in closed-loop supply chains. The study generated a framework to show how profitability can be integrated along the closed-loop supply chain. The studyalso disclosed that product design and collaborative relationships offer the most potential forovercoming barriers among and between supply chains and for achieving a profitable CLSC.