Furniture chain closed after Chapter 7 bankruptcy-style liquidation

Furniture chains seem to be perpetually going out of business.

Badcock Furniture, for example, filed for Chapter 11 bankruptcy in July 2024 and took nearly a year to actually close all of its stores. A zombie version of the brand was still sending out emails, long after it seemed like a good idea to give the chain cash without having eyes on the furniture you were purchasing.

That generally happens because, like many retailers, furniture chains bring in a liquidation company to sell off their inventory. In many cases, those companies will keep some stores open to consolidate inventory and sell off as much as possible.

That can take time, which explains why it seems like months where you see people holding “Going out of business forever” signs directing you to the sales.

While there have been a lot of retail bankruptcies in general, the furniture industry has faced excessive struggles. There's no one reason why smaller chains and family-owned furniture chains have struggled, according to Ray Allegrezza, executive director of the International Home Furnishings Representative Association.

“There’s this sense that it’s just not fun anymore for some of these guys. You’ve got e-comm growing, you’ve got a tough business economy, you’ve got younger consumers that do not want heirloom furniture — it all makes perfect sense why these independents are shrinking,” he told Business of Home.

The furniture industry has been hit hard by bankruptcies.

Image source: Getty Images

RoomPlace tried to survive Chapter 11 bankruptcy

When RoomPlace filed for Chapter 11 bankruptcy protection over a year ago, it planned to reorganize and stay open. Struggling stores would close, and the company would emerge stronger than ever.

Since the company has been around since 1912, its closing seemed almost unfathomable.

“We Make Furniture Buying Easy! For those who don’t know us, The RoomPlace is all about making furniture buying easy. We start by having a bilingual sales team to answer any of your questions. Our showrooms feature completely furnished, coordinated rooms created by the company’s team of experienced designers,” the company shared on its website.

It was a customer-first business designed, in recent years, to combat the internet by letting customers be hands-on.

“The RoomPlace concept allows you to experience a total-room concept and select the perfect design that meets your individual tastes and needs. At The RoomPlace, you save on every piece of furniture you buy and save even more when you buy a complete room,” the chain added.

At the time of its Chapter 11 filing, it had a clear plan.

RoomPlace Chapter 11 becomes Chapter 7-style liquidation

RoomPlace, a Lombard, Ill., furniture retail chain with 26 locations, planned to close six stores in the Indianapolis area, one in Kenosha, Wis., and one in Peoria, Ill., at the time of its filing.

The chain planned to wind down operations from the eight stores through a contract with Planned Furniture Promotions, which conducted store closing sales.

The retailer's CEO Bruce Berman reportedly said that the company is closing the eight stores to concentrate on strengthening its 18 stores in Chicagoland. He mentioned declining retail sales across the country and challenges in the furniture industry as having an impact on its decision to file bankruptcy.

Those plans, however, quickly fell apart, and the company was eventually forced to close all of its stores. No formal Chapter 7 bankruptcy was filed, but the Chapter 11 essentially was converted when the decision was made that the company had no clear path forward.

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RoomPlace CEO Bruce Berman had been hopeful at the time of the initial filing.

“We’re making the tough decisions now to ensure we’re around for another 100 years,” he told Furniture Today.

Furniture chains that have filed bankruptcy over the past 12 months

American Mattress

Filed: Mid‑July 2025, American Mattress — founded in 1988 and operating nearly 100 stores across IL, IN, MI, FL, and MO — filed for Chapter 11 protection
Restructuring: The company announced it will close approximately 52 stores, mostly in Illinois and Indiana. Remaining locations in Michigan, Florida, and Missouri will remain open. Assets and liabilities are modest (under $10 million).

At Home (home décor and furniture chain)

Filed: June 16, 2025, At Home (approx. 260 US locations) filed Chapter 11, citing nearly $2 billion in debt and severe financial pressure from tariffs, inflation, and shifting customer demand.
Restructuring: Obtained $600 million in financing (including $200 million new capital); lenders led by Redwood, Farallon, Anchorage are set to take ownership.
It will close 24 stores (a number that has been changing) by September 30, 2025, while continuing operations at the rest and aiming to emerge from bankruptcy by October 2025.

American Freight (Sears Outlet conversion)

Filed: As part of parent Franchise Group’s Chapter 11 filing on November 3, 2024, American Freight was included. The wind‑down began immediately.
Outcome: Began store‑closing sales on November 5, planning to shut down all 300+ stores by end of 2024.
In January 2025, a U.S. court approved the sale of 28 stores and one distribution center to a new company (AF Newco I LLC), which plans to reopen those locations later in 2025.

Conn’s HomePlus and Badcock Home Furniture

Filed: Conn’s HomePlus (which acquired Badcock in December 2023) filed for Chapter 11 in July 2024 and announced plans to close 73 of 170 stores. Sister chain Badcock was also slated for wind‑down by October 2024.
Outcome: Both brands were liquidated.