Several major US furniture manufacturers are shutting down operations amid mounting financial pressures, without filing for bankruptcy. Economic headwinds, including rising labour and product costs, high interest rates, and declining customer foot traffic, have pushed companies to the brink.
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Progressive Furniture, a North Carolina-based subsidiary of Sauder Woodworking, announced it will cease operations by year-end, laying off 30 employees. The closure follows the shutdown of its key Mexican supplier, which accounted for 60% of its inventory. The company, which supplies major retailers like Walmart, Amazon, and Lowe's, will honour existing orders and warranties but will not file for bankruptcy.
Similarly, Elk Home, a Pennsylvania-based furniture and lighting firm, is liquidating all assets after over 40 years in business. GA Group is overseeing the auction of $46 million in inventory from Elk's 950,000 sq. ft. Georgia distribution centre, running through 10 July.
Other closures include Alabama's Kith Furniture, which shut its factory and laid off 59 workers, and Worthy's Run Furniture in Maryland, which filed for Chapter 11 bankruptcy in May.
The wave of closures highlights growing instability in the US home furnishings sector, once a reliable retail pillar, now strained by inflationary costs and faltering consumer confidence.
Source: www.msn.com
