Another Popular Furniture Chain Files For Chapter 11 Bankruptcy
Over the past two years, furniture retail chains have faced significant financial distress due to a combination of factors, including high inflation, rising interest rates, and shifting consumer attitudes. These challenging conditions have led several companies to file for bankruptcy protection, either under Chapter 11 or Chapter 7.
High-End Furniture Brands in Trouble
One notable casualty is Mitchell Gold + Bob Williams, a high-end furniture maker and retailer with 27 stores across 14 states. The company announced the closure of all its stores in August 2023 and subsequently filed for Chapter 11 bankruptcy on September 6, 2023. Unable to secure sufficient financing to sustain operations, it later shifted to Chapter 7 liquidation.
Similarly, the parent company of upscale furniture and home decor retailer Z Gallerie, which operated 21 stores in nine states, filed for Chapter 11 bankruptcy protection on October 16, 2023. The company’s profitability and cash position were severely impacted by supply chain issues and rising import costs experienced in 2021 and 2022.
Restructuring and Store Closures
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 retailer aimed to restructure its debts and announced plans to close several of its stores. The Lombard, Illinois-based chain, which operates 26 locations, shuttered six stores in the Indianapolis area, one in Kenosha, Wisconsin, and another in Peoria, Illinois. CEO Bruce Berman cited declining retail sales nationwide and challenges within the furniture industry as key factors influencing the bankruptcy decision.
In another case, Southwest Mattress Sales, the parent company of Factory Mattress serving the Austin and San Antonio markets, filed for Chapter 11 protection on June 7. Financial distress was attributed to road construction near its stores, limiting access to some of its 21 locations.
Discount Furniture Chain Liquidations
The popular discount furniture retailer Conn’s HomePlus also faced hardships, filing for Chapter 11 bankruptcy on July 23. The company announced plans to liquidate all its stores following declines in sales and challenges in integrating W.S. Badcock, a home goods retailer acquired the previous year. Conn’s will close over 380 Badcock stores and approximately 170 Conn’s locations.
Metro Mattress, a bedding products retailer, filed for Chapter 11 bankruptcy on September 4, attributing its financial troubles to its expansion into new markets and downturns within the industry. The Syracuse, New York-based chain, which operates about 70 locations in Upstate New York, Connecticut, Massachusetts, New Hampshire, and Rhode Island, announced a strategic focus on strengthening its New York locations while exiting the other four states.
In its bankruptcy petition, Metro Mattress reported liabilities ranging from $10 million to $50 million and assets between $1 million to $10 million. The company indicated that funds would be available for distribution to unsecured creditors. CEO Dino Cifelli expressed confidence in the company’s core market, stating, “The company has a strong business model in our core New York market and will continue our normal business operations in that market. We have made the tough decision to exit the New England market. This strategic step allows us, with the support of our vendors and loyal customer base, to pave the way for a robust future.”
Established in 1976, Metro Mattress has become a leading mattress specialty retailer in New York, and it hopes to navigate its restructuring successfully in the challenging retail landscape.
