The US furniture industry continues to struggle under mounting economic challenges, including inflation-driven cost increases, high interest rates, and a slowdown in the housing market. With fewer home purchases, demand for new furniture has declined, exacerbating difficulties for manufacturers and retailers alike.
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In recent developments, Worthy's Run Furniture LLC, a custom wood cabinetry manufacturer based in Hagerstown, Maryland, filed for Chapter 11 bankruptcy on 28 May. The company cited up to $50,000 in assets and between $100,000 and $500,000 in liabilities, without specifying the cause for its filing.
Progressive Furniture, a North Carolina-based manufacturer and subsidiary of Sauder Woodworking, announced it will cease operations by the end of the year after its primary Mexican supplier shut down. The closure affects all 30 employees, though the company stated it will honour warranties and fulfil existing orders. It has no plans to file for bankruptcy.
Separately, 5th Avenue Furniture Warehouse Inc. in Bay Shore, New York, filed for Chapter 11 bankruptcy on 6 June. It listed up to $500,000 in assets against $1 million to $10 million in liabilities, including a disputed $2.37 million tax debt to the New York State Department of Taxation & Finance.
While some companies pursue bankruptcy protection, others are closing stores without filing. Scandinavian Designs, a long-established furniture chain headquartered in Boise, Idaho, will shut its Sioux Falls, South Dakota, location by the end of June. This follows a similar closure last year in Fair Oaks, California. The company called the latest move a "financial business decision" but has not disclosed further closures or bankruptcy intentions.
These closures and filings reflect broader instability in the furniture sector, raising concerns about sustained economic strain in related industries.
Source: www.thestreet.com