Several U.S. furniture retailers have filed for Chapter 11 bankruptcy in 2025, citing declining sales, intense competition, and economic pressures. Sales fell due to a sluggish real estate market, rising inflation, tariffs, and lingering pandemic impacts.
© Khwaneigq | Dreamstime
Notable filings include Worthy's Run Furniture (May 28), 5th Avenue Furniture (June 6), American Mattress (July 6), and Walker Edison Furniture Company (August 28). Landmark Furniture, a Texas-based family-run chain established in 1997, filed on November 9, covering five locations in the Houston area. Its bankruptcy follows a $342,000 jury verdict from a 2021 workplace injury lawsuit.
The retail sector has struggled against larger competitors such as IKEA, Ashley Furniture, and Ethan Allen. According to the National Retail Federation, U.S. furniture sales in October 2025 fell 1.7% unadjusted from the prior year and 0.8% seasonally adjusted from September.
These filings reflect broader financial distress for smaller furniture chains seeking to reorganise operations, reduce liabilities, and survive in a market challenged by rising costs and reduced consumer spending on home furnishings.
Source: www.thestreet.com
