Yet another furniture retailer hits Chapter 11 on NYE

When people fear losing their jobs while struggling to pay everyday bills, they probably don't replace their couch unless they truly have to.

In some cases, furniture is a need, but even then, an old sofa or somewhat used kitchen table can be scrounged on Facebook Marketplace or found at a yard sale.

"Furniture shipments decreased by 6% between August 2024 and August 2025, while backlogs remained flat. Furniture stockpiles, however, increased by 3% from August to August, a possible indication that retailers are adjusting their ordering habits in response to current tariffs," according to Homes.com.

Most Americans, although not the wealthiest ones, have pulled back on furniture spending.

Industry experts agree that consumer caution is hitting the furniture sector hard. As Mark Laferriere notes, discretionary purchases are being delayed, and Jerry Epperson adds that retailers are struggling to generate excitement with new products.

“Furniture, of course, is many times a discretionary and deferrable expense, so weakness in the overall economy or declines in consumer confidence, like we’ve seen the last few months, can impact consumers’ willingness to spend,” Laferriere, an assurance partner at Smith Leonard and member of its furniture practice group, told Homes.com."

He also shared another key reason for why furniture sales have dipped.

“Furniture purchases are also tied to the overall housing market, which has been sluggish, but could be primed for a resurgence with higher inventory and the ongoing reductions in interest rates,” he added.

Other analysts are worried about the length of the downturn.

“I am very concerned that the home furnishings industry is entering its third year of ongoing weak consumer interest, suffering from extreme complacency and lack of enthusiasm!” wrote longtime furniture industry analyst Epperson on BusinessofHome.com. “Too many of our stores and online retailers are looking at 2025 as being more of the same! We are not seeing the new product introductions that we need to spur consumer attention and interest this coming Spring.”

That has added to a number of furniture brands filing Chapter 11 bankruptcy including an unexpected New Year's filing by Novi Studios Inc., which does business as Sohomod.com.

Sohomod.com hit by economic conditions

When the economy struggles, most people pull back their spending on non-essential items. In other cases, people lucky enough to be in a strong financial situation can use the economic woes to their advantage.

Even consumers in relatively strong financial positions are becoming more cautious. My wife and I, for example, are building a home with a major national builder.

We didn’t pay less than buyers earlier this year, but received higher incentives, a sign that sellers are adjusting to softer demand.

That same caution will shape our furniture purchases once we move. Rather than buying everything new at once, we plan to look for discounts, consider retailers emerging from Chapter 11, and supplement with secondhand purchases.

It’s the same behavior many households appear to be adopting, as economic uncertainty makes large discretionary purchases easier to delay.

More Bankruptcy:

• Key auto parts and services company files Chapter 11 bankruptcy
• Key travel brand files for Chapter 11 bankruptcy
• Self-driving-car company files for Chapter 11 bankruptcy protection
• 35-year-old consumer company files Chapter 11 bankruptcy

It's a time when even well-off consumers are being careful. That contributed to the Chapter 11 bankruptcy filing of Novi Studios, which is better known to consumers as Sohomod.com.

Sohomod.com, a New York City-based company, launched in February 2009. It's a team of over 30 furniture experts that operates a website that ships nationally from a New Jersey warehouse.

The company serves both home and office customers.

Novi Studio/Sohomod.com Chapter 11 bankruptcy details

• Debtor:Novi Studio Inc
• Case Type: Chapter 11 bankruptcy (reorganization)
• Bankruptcy Case Number:25-46194
• Date Filed:December 31, 2025
• Reported asset/liability band: roughly $100K to $500K in assets and liabilities (as listed on bankruptcy reporting databases).
• The company is described in filings and reports as a Brooklyn, NY–based furniture retailer and e-commerce operator:
• Status: Voluntary Chapter 11 filing of the company in U.S. Bankruptcy Court.
  Sources: Bankruptcy Observer, PacerMonitor
• Novi Studio Incis the corporate entity behind the brand Sohomod (e.g., sohomod.com) in business directories and BBB listings.
• That means Novi Studio Inc is the legal name used on corporate filings, even though customers know the business as Sohomod.

Key furniture business bankruptcies in 2025

U.S. corporate bankruptcies are rising in 2025 to levels not seen in over a decade, driven by inflation, high interest rates, and cost pressures that include tariffs. By November 2025, there were at least 717 bankruptcy filings, up roughly 14% from 2024 and the highest annual total since around 2010, according to The Washington Post.

American Mattress (AFM Mattress Company, LLC)

• Specialty bedding and mattress retailer operating ~90+ stores in multiple U.S. states.
• Filed Chapter 11 in July 2025 in the U.S. Bankruptcy Court for the District of Delaware.
• Listed assets & liabilities each between $1M–$10M.
• Continues operations in some regions while closing others.
• Bankruptcy docket (AFM Mattress Company LLC, Case 1:25-bk-11288) confirms Chapter 11.
  Source: Furniture Today PacerMonitor

American Signature, Inc. (Value City Furniture/ American Signature Furniture)

• Major U.S. furniture retailer with ~120+ locations across 17 states.
• Filed Chapter 11 on November 22, 2025 in Delaware Bankruptcy Court.
• Entered restructuring with a stalking-horse asset sale and possible store closures.
• Reported liabilities in the hundreds of millions of dollars.
  Source: PacerMonitor

Brenmark, Inc./Landmark Furniture & Mattresses For Less (DBA)

• Parent company for furniture retail brands including Landmark Furniture and Mattresses for Less.
• Filed Chapter 11 on November 9, 2025 in the U.S. Bankruptcy Court, Southern District of Texas.
• Case includes multiple debtor entities and continuation of proceedings in late 2025.
  Source: Inforuptcy

Walker Edison Furniture Company

• E-commerce and ready-to-assemble furniture brand.
• Filed Chapter 11 in late August 2025 and pursued a sale via a stalking-horse bid for restructuring financing.
  Source: Kirk O'Neil at TheStreet

Additional notes (not Chapter 11)

These weren’t Chapter 11 reorganizations but are related bankruptcies or closures in the sector:

• Metro Mattress : Filed Chapter 11 in late 2024 and subsequently moved to full store liquidation/closure in 2025, according to Money Digest.
• Several smaller or independent mattress retailers have filed Chapter 7 (liquidation), not Chapter 11 (e.g., Mattress Land in CA/WA), reported Furniture Today.

Related: US' second-oldest department store chain considers Chapter 11