Furniture retail chains have faced financial distress over the last two years from a combination of issues, including high inflation, rising interest rates, and changes in consumer attitudes.
These conditions have led to financial hardships that have required some companies to file for Chapter 11 or Chapter 7 bankruptcy protection.
Related: Another major retail chain may soon file Chapter 11 bankruptcy
High-end furniture maker and retailer Mitchell Gold + Bob Williams, which had 27 stores in 14 states, in August 2023 closed all of its stores and filed for Chapter 11 bankruptcy on Sept. 6, 2023 after it was not able to obtain adequate financing to continue operating. It later filed Chapter 7 liquidation.
The parent company of another upscale furniture and home decor retailer, Z Gallerie, which operated 21 stores in nine states, on Oct. 16, 2023, filed for Chapter 11 bankruptcy protection as supply chain and import cost increases in 2021 and 2022 severely impacted its brand profitability and cash position.
Furniture and mattress retailer The RoomPlace on Feb. 2, 2024, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Illinois to restructure its debts and close several of its stores.
The Lombard, Ill., furniture retail chain with 26 locations closed six stores in the Indianapolis area, one in Kenosha, Wis., and one in Peoria, Ill.
The retailer's CEO Bruce Berman reportedly said that the company closed the eight stores to concentrate on strengthening its 18 stores in Chicagoland. He mentioned declining retail sales across the country and challenges in the furniture industry as having an impact on its decision to file bankruptcy.
Related: 2 iconic retailers closing all stores in Chapter 11 bankruptcy
Southwest Mattress Sales, the parent company of Factory Mattress that serves the Austin and San Antonio, Texas markets, on June 7 filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Texas after nearby road construction limited access to some its 21 stores and caused financial distress.
Popular discount furniture retail chain Conn's HomePlus on July 23 filed for Chapter 11 bankruptcy to liquidate all of its stores as it struggled with sales declines and integrating home goods retailer W.S. Badcock into its company after purchasing the chain last year. The company will close and liquidate over 380 Badcock stores and about 170 Conn's locations.
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Metro Mattress closing stores in Chapter 11
Finally, bedding products retailer Metro Mattress filed for Chapter 11 bankruptcy on Sept. 4, blaming its expansion into new markets and downturns in the industry for its financial distress.
More bankruptcy stories:
- Another popular ice cream brand files for Chapter 11 bankruptcy
- Popular burger chain faces likely Chapter 11 bankruptcy
- Huge shipping company files Chapter 11 bankruptcy to liquidate
The Syracuse, N.Y., mattress retail chain, which operates about 70 locations in Upstate New York, Connecticut, Massachusetts, New Hampshire and Rhode Island, said in a statement that it would focus on strengthening its New York locations in a restructuring and exit markets in the four other states, Furniture Today reported.
The debtor reported $10 million to $50 million in liabilities and $1 million to $10 million in assets in its petition. The debtor said funds would be available to distribute to unsecured creditors.
“The company has a strong business model in our core New York market and will continue our normal business operations in that market,” CEO Dino Cifelli said in the statement. “We have made the tough decision to exit the New England market. This strategic step allows us, with the support of our vendors and loyal customer base, to pave the way to a robust future.”
Metro Mattress was established in 1976 and has become a leading mattress specialty retailer in New York.
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