The furniture retail sector has faced financial distress over the last year, leading to manufacturer and store closings, as well as bankruptcy filings for some of the most economically challenged companies.
The industry has been dealing with rising labor and product costs caused by inflation, a slowdown in the real estate market that has depressed furniture sales, and increased interest rates on debt, all of which have led to financial distress.
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North Carolina furniture manufacturer and supplier Progressive Furniture, which provides products to major retailers, revealed that it would close down its business at the end of the year and lay off all 30 of its employees.
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The subsidiary of ready-to-assemble furniture company Sauder Woodworking, blamed the closing of its primary supplier in Mexico, which provided 60% of its products, for its decision to shut down its business. The company imports wooden furniture from both Asia and Mexico.
The company, which operates a warehousing and distribution plant in Claremont, N.C., said it will fulfill existing orders and honor warranties until it closes. It also has no plans to file for bankruptcy.
Progressive Furniture sells its products through Walmart, Target, Home Depot, Lowe's, Amazon, Wayfair, and other furniture retailers.
Canadian furniture company moves plant to U.S.
In an unusual business move that might have had something to do with U.S. tariffs on imports, Canadian furniture company Prepac in March 2025 ceased manufacturing at its Delta, British Columbia, plant and moved all production to its factory in North Carolina.
Unifor, the union representing the Delta plant's workers, blamed President Trump's tariffs for the plant's closing, which will result in 170 union worker layoffs after the company winds down maintenance.
Franchise Group in November 2024 filed a Chapter 11 petition on behalf of furniture chain American Freight, blaming “sustained inflation and macroeconomic challenges facing the large durable goods sector.”
While winding down operations, AF Newco I LLC, which owns Buddy's Home Furnishings, in January 2025 won court approval to purchase 30 store leases, a distribution center lease, and American Freight's intellectual property for $1.12 million.
Worthy's Run Furniture
Worthy's Run files for bankruptcy protection
And now, high-quality custom wood cabinetry manufacturer and retailer Worthy's Run Furniture LLC has filed for Chapter 11 bankruptcy protection to reorganize its business.
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The Hagerstown, Md., furniture manufacturing and retail company filed its Subchapter V petition, listing up to $50,000 in assets and $100,000 to $500,000 in liabilities. The petition indicated that funds would be available for distribution to unsecured creditors.
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The company did not indicate a reason for filing for bankruptcy in its petition.
Worthy's Run was founded in 2006 by sole owner Todd Gladfelter as a custom furniture manufacturer, specializing in kitchen islands and expanding into custom-built kitchen cabinetry and furniture for the entire house, according to the company's website.
The company does not mass produce, purchase cabinets, or use pre-fabricated products in its inventory.
A review of Worthy Run's website shows kitchen islands priced from $2,180 to $4,084, wine bars from $7,925 to $10,670, and hutches from $3,830 to $12,612.
Customers can order furniture custom-made and hand-crafted by the company's designers and craftsmen, the website says. The company also uses Sherwin-Williams paints, finishes, and specialty coatings for its products.
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