A major U.S. manufacturer of bedroom and living room furniture, has closed its Alabama plant, marking another blow to the struggling furniture sector. The company, which once operated five facilities and employed 260 people, confirmed the shutdown of its Haleyville factory, affecting 59 workers.
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Unlike other recent closures, Kith Furniture has not filed for bankruptcy. The company's website still lists its showroom in High Point, North Carolina, though its operational status remains unclear.
The closure follows a broader trend in the industry, driven by a slowdown in the real estate market, rising production costs, high interest rates, and declining consumer demand. As fewer homes are sold, furniture sales have also declined.
Progressive Furniture, another U.S. manufacturer, will also cease operations after its main Mexican supplier closed. Although Progressive will fulfil existing orders and honour warranties, it too plans a full shutdown without bankruptcy proceedings.
Additionally, retailers like 5th Avenue Furniture Warehouse and Worthy's Run Furniture have filed for Chapter 11 bankruptcy due to debt and market pressure.
The closures reflect a deepening crisis across the furniture supply chain, where manufacturers are squeezed by faltering retail demand and global supply disruptions.
Source: www.thestreet.com
