BIG NEWS: Another Popular Furniture Chain Files For Chapter 11 Bankruptcy

According to The Street , Furniture retail chains have faced significant financial challenges over the past two years due to a combination of factors, including high inflation, rising interest rates, and shifting consumer behavior. These difficulties have led several companies in the industry to seek bankruptcy protection, with some opting for Chapter 11 or Chapter 7 filings.

In August 2023, Mitchell Gold + Bob Williams, a high-end furniture maker and retailer with 27 stores across 14 states, closed all of its locations and filed for Chapter 11 bankruptcy on September 6, 2023. The company struggled to secure enough financing to remain operational, ultimately filing for Chapter 7 liquidation.

Similarly, Z Gallerie, another upscale furniture and home decor retailer, filed for Chapter 11 bankruptcy on October 16, 2023. The brand’s financial troubles were exacerbated by supply chain disruptions and rising import costs in 2021 and 2022, which severely impacted profitability and cash flow.

On February 2, 2024, The RoomPlace, a furniture and mattress retailer based in Lombard, Illinois, filed for Chapter 11 bankruptcy in an effort to restructure its debts and close several stores. The company, which operates 26 locations, closed eight stores, including those in Indianapolis, Kenosha, and Peoria, as part of a strategy to focus on its remaining 18 stores in the Chicagoland area. CEO Bruce Berman cited declining retail sales and challenges in the furniture industry as contributing factors.

Southwest Mattress Sales, the parent company of Factory Mattress, filed for Chapter 11 bankruptcy on June 7, 2023, after road construction near some of its 21 stores in the Austin and San Antonio areas limited customer access and caused financial strain.

Discount furniture retailer Conn’s HomePlus also filed for Chapter 11 bankruptcy on July 23, 2023, to liquidate its stores. The company struggled with declining sales and issues integrating home goods retailer W.S. Badcock, which it acquired the previous year. Conn’s plans to close over 380 Badcock stores and approximately 170 Conn’s locations.

In September 2023, Metro Mattress, a bedding products retailer with around 70 locations across several states, filed for Chapter 11 bankruptcy. The company cited challenges from its expansion into new markets and a downturn in the industry. Metro Mattress plans to restructure and focus on its core market in New York, exiting four other states. CEO Dino Cifelli emphasized that the company would continue operations in New York while cutting back on its New England locations. The company’s petition indicated liabilities between $10 million and $50 million, with assets ranging from $1 million to $10 million.

These filings reflect the tough economic climate and competitive pressures faced by furniture and mattress retailers, many of which are restructuring in hopes of stabilizing their businesses for the future.