Another popular furniture chain files for Chapter 11 bankruptcy
A major bedding products retail chain has filed for Chapter 11 protection to restructure is business and shut down stores.
Furniture retail chains have faced financial distress during the last two years from a mixture of issues, including high inflation, rising interest rates, and changes in consumer attitudes.
These conditions have resulted in financial hardships which have required some companies to file for Chapter Eleven or Chapter 7 financial disaster protection.
Related: One more major retail chain may soon file Chapter Eleven financial disaster
High-end furniture maker and retailer Mitchell Gold + Bob Williams, which had 27 stores in 14 states, in August 2023 closed all of its stores and filed for Chapter Eleven financial disaster on Sept. 6, 2023 after it turned into now not in a position to obtain adequate financing to continue operating. It later filed Chapter 7 liquidation.
The parent company of every other upscale furniture and residential decor retailer, Z Gallerie, which operated 21 stores in 9 states, on Oct. sixteen, 2023, filed for Chapter Eleven financial disaster protection as supply chain and import cost increases in 2021 and 2022 severely impacted its brand profitability and cash position.
Furniture and mattress retailer The RoomPlace on Feb. 2, 2024, filed for Chapter Eleven financial disaster inside of the U.S. Financial disaster Court for the Northern District of Illinois to restructure its debts and shut a few of its stores.
The Lombard, In poor health., furniture retail chain with 26 locations closed six stores inside of the Indianapolis area, one in Kenosha, Wis., and one in Peoria, In poor health.
The retailer's CEO Bruce Berman reportedly said that the company closed the eight stores to deal with strengthening its 18 stores in Chicagoland. He mentioned declining retail sales across the us of a and challenges inside of the furniture industry as having an impact on its decision to file financial disaster.
Related: 2 iconic retailers closing all stores in Chapter Eleven financial disaster
Southwest Mattress Sales, the parent company of Factory Mattress that serves the Austin and San Antonio, Texas markets, on June 7 filed for Chapter Eleven protection inside of the U.S. Financial disaster Court for the Western District of Texas after nearby road construction limited get entry to to some its 21 stores and caused financial distress.
Renowned bargain furniture retail chain Conn's HomePlus on July 23 filed for Chapter Eleven financial disaster to liquidate all of its stores as it struggled with sales declines and integrating home goods retailer W.S. Badcock into its company after purchasing the chain last year. The company will close and liquidate over 380 Badcock stores and about a hundred and seventy Conn's locations. Houston Chronicle/Hearst Newspapers via Getty Images/Getty Images
Metro Mattress closing stores in Chapter Eleven
Finally, bedding products retailer Metro Mattress filed for Chapter Eleven financial disaster on Sept. four, blaming its expansion into new markets and downturns inside of the industry for its financial distress.
More financial disaster stories:
- One more renowned ice cream brand files for Chapter Eleven financial disaster
- Renowned burger chain faces likely Chapter Eleven financial disaster
- Huge shipping company files Chapter Eleven financial disaster to liquidate
The Syracuse, N.Y., mattress retail chain, which operates about 70 locations in Upstate New York, Connecticut, Massachusetts, New Hampshire and Rhode Island, said in a statement that it truly is going to pay attention on strengthening its New York locations in a restructuring and exit markets inside of the four other states, Furniture This day reported.
The debtor reported $10 million to $50 million in liabilities and $1 million to $10 million in assets in its petition. The debtor said funds will be reachable to distribute to unsecured creditors.
“The company has a powerful business model in our core New York market and will continue our normal business operations in that market,” CEO Dino Cifelli said inside of the statement. “We've made the not easy decision to exit the New England market. This strategic step permits us, with the make stronger of our vendors and dependable customer base, to pave the consequently of of the a powerful future.”
Metro Mattress turned into established in 1976 and has change into a number one mattress specialty retailer in New York.
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