BIG UPDATE: Another Popular Furniture Chain Files For Chapter 11 Bankruptcy
Furniture retail chains have been grappling with significant financial challenges over the past two years, driven by high inflation, rising interest rates, and shifts in consumer behavior. These pressures have pushed several companies to seek bankruptcy protection, either through Chapter 11 or Chapter 7 filings.
Mitchell Gold + Bob Williams Files for Bankruptcy
High-end furniture maker and retailer Mitchell Gold + Bob Williams, which operated 27 stores across 14 states, closed all its locations in August 2023. The company initially filed for Chapter 11 bankruptcy on September 6, 2023, seeking to secure adequate financing. However, unable to stabilize its financial situation, the company later transitioned to Chapter 7 liquidation.
Z Gallerie’s Financial Woes
Z Gallerie, an upscale furniture and home decor retailer with 21 stores in nine states, faced severe financial difficulties due to supply chain issues and increased import costs in 2021 and 2022. On October 16, 2023, its parent company filed for Chapter 11 bankruptcy protection, aiming to address the impact on its profitability and cash flow.
The RoomPlace Restructures Under Chapter 11
The RoomPlace, a furniture and mattress retailer with 26 locations, filed for Chapter 11 bankruptcy on February 2, 2024, in the U.S. Bankruptcy Court for the Northern District of Illinois. The chain closed eight stores—six in the Indianapolis area, one in Kenosha, Wis., and one in Peoria, Ill.—to focus on strengthening its 18 stores in the Chicagoland area. CEO Bruce Berman cited declining retail sales and industry challenges as factors in the company’s financial troubles.
Southwest Mattress Sales Faces Bankruptcy
Southwest Mattress Sales, the parent company of Factory Mattress, which serves the Austin and San Antonio, Texas markets, filed for Chapter 11 protection on June 7, 2024. The financial distress was attributed to road construction that limited access to some of its 21 stores, causing significant operational issues.
Conn’s HomePlus Liquidates Stores
Discount furniture chain Conn’s HomePlus filed for Chapter 11 bankruptcy on July 23, 2024, in a bid to liquidate all its stores. The company struggled with declining sales and difficulties integrating the home goods retailer W.S. Badcock, which it had acquired the previous year. Conn’s plans to close and liquidate over 380 Badcock stores along with approximately 170 Conn’s locations.
Metro Mattress Restructures and Exits Markets
Bedding products retailer Metro Mattress, based in Syracuse, N.Y., filed for Chapter 11 bankruptcy on September 4, 2024. The company cited its expansion into new markets and industry downturns as reasons for its financial strain. With about 70 locations across Upstate New York, Connecticut, Massachusetts, New Hampshire, and Rhode Island, Metro Mattress will now focus on its core New York market and exit the New England region. CEO Dino Cifelli emphasized that this strategic move would help strengthen the company’s future, with ongoing business operations continuing in New York.
