Another Popular Furniture Chain Files For Chapter 11 Bankruptcy
In recent years, furniture retail chains have grappled with significant financial challenges due to high inflation, rising interest rates, and shifting consumer attitudes. These factors have forced several companies to seek bankruptcy protection, with many filing under Chapter 11 or Chapter 7.
Mitchell Gold + Bob Williams
In August 2023, high-end furniture maker and retailer Mitchell Gold + Bob Williams, known for its 27 stores across 14 states, closed all its locations and filed for Chapter 11 bankruptcy on September 6, 2023. The company struggled to secure adequate financing to continue operations, leading to a subsequent Chapter 7 liquidation.
Z Gallerie
On October 16, 2023, Z Gallerie’s parent company filed for Chapter 11 bankruptcy protection. The upscale furniture and home decor retailer, which operated 21 stores in nine states, faced severe profitability and cash flow issues due to supply chain disruptions and rising import costs that began in 2021 and 2022.
The RoomPlace
The RoomPlace, a furniture and mattress retailer, filed for Chapter 11 bankruptcy on February 2, 2024, in the U.S. Bankruptcy Court for the Northern District of Illinois. The company aimed to restructure its debts while closing several stores. With 26 locations, it closed eight, including six in the Indianapolis area and one each in Kenosha, Wisconsin, and Peoria, Illinois. CEO Bruce Berman noted that declining retail sales nationwide and specific industry challenges influenced the decision.
Southwest Mattress Sales
On June 7, 2024, Southwest Mattress Sales, the parent company of Factory Mattress, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Texas. Financial distress arose after nearby road construction limited access to some of its 21 stores in the Austin and San Antonio markets.
Conn’s HomePlus
Discount furniture chain Conn’s HomePlus filed for Chapter 11 bankruptcy on July 23, 2024, to liquidate all its stores. The company struggled with declining sales and the integration of home goods retailer W.S. Badcock, which it purchased the previous year. The bankruptcy plan involves closing and liquidating over 380 Badcock locations and about 170 Conn’s stores.
Metro Mattress
Lastly, bedding products retailer Metro Mattress filed for Chapter 11 bankruptcy on September 4, 2024. The Syracuse, New York-based chain cited its expansion into new markets and industry downturns as contributing factors to its financial distress. Operating around 70 locations across Upstate New York, Connecticut, Massachusetts, New Hampshire, and Rhode Island, the company plans to focus on strengthening its New York operations while exiting markets in the other four states. CEO Dino Cifelli expressed confidence in the company’s core business model and stated that funds would be available for unsecured creditors.
Metro Mattress, established in 1976, has established itself as a leading mattress specialty retailer in New York, and the strategic decision aims to pave the way for a stronger future.
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