Another U.S. furniture retailer has filed for Chapter 11 bankruptcy as economic uncertainty continues to weigh on the sector.
© Oleg Dudko | Dreamstime
On December 31, 2025, Novi Studio Inc., known to consumers as Sohomod.com, voluntarily filed for Chapter 11 in the U.S. Bankruptcy Court. The Brooklyn-based company operates a national e-commerce and office/home furniture business from its New Jersey warehouse, with reported assets and liabilities between $100,000 and $500,000. This filing reflects a broader trend across the industry, where furniture shipments fell six percent year-over-year while stockpiles increased three percent, signalling caution among retailers. Even higher-income consumers are delaying discretionary purchases, affecting overall demand, and spending on furniture, which is closely tied to housing market activity, remains subdued despite reductions in interest rates.
Other notable Chapter 11 filings in 2025 included American Mattress (AFM Mattress Company, LLC), which filed in July with assets and liabilities between $1 million and $10 million while continuing partial operations; American Signature, Inc. (Value City Furniture/American Signature Furniture), which filed on November 22 with liabilities in the hundreds of millions and is pursuing restructuring; Brenmark, Inc./Landmark Furniture & Mattresses For Less, which filed on November 9 with multiple debtor entities; and Walker Edison Furniture Company, which filed in late August while seeking a sale via restructuring. The industry continues to struggle with a combination of inflation, high interest rates, tariffs, and cautious consumer behaviour, and analysts warn that 2026 may bring ongoing weak consumer enthusiasm and slow adoption of new products. The Sohomod.com filing underscores the vulnerability of even smaller, agile e-commerce players in a challenging discretionary goods market and highlights the ongoing volatility facing the U.S. furniture retail sector.
Source: www.thestreet.com
