A combination of economic challenges, which include increased home prices and interest rates, rising inflation, and consumer reluctance to spend in a questionable economy, have led to financial consequences in the furniture industry.
The furniture retail sector is also bracing for increased tariff costs from overseas suppliers, which amount to a 54% tariff on imports from China and a 25% tariff on furniture suppliers in Canada and Mexico that went into effect on April 9.
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Tariffs were blamed for Canadian furniture company Prepac ceasing production at its Delta, British Columbia, plant in early April and moving all production to its factory in North Carolina, the company’s workers’ union, Unifor, claimed.
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Prepac’s CEO Nick Bozikis, however, said the decision to close the Delta plant and move production to North Carolina developed over many months before any tariff risks to Prepac’s business arose.
Harsh economic issues led North Carolina furniture manufacturer and supplier Progressive Furniture to reveal that it will close down its business at the end of the year and lay off all 30 of its employees.
Progressive, a subsidiary of ready-to-assemble furniture company Sauder Woodworking, blamed the closing of its primary supplier in Mexico for its decision to shut down its business. The company imports wooden furniture from both Asia and Mexico.
“This decision was not made lightly, and we understand the impact it will have on our employees, customers and partners,” Dan Kendrick, company president, said.
“Obviously, business conditions have been challenging for the past few years, but the closure of our primary supplier in Mexico has made a major impact,” Kendrick said.
Furniture retailers close locations
Furniture retailers facing financial distress have closed locations and, in some cases, filed for bankruptcy.
Furniture and mattress retailer The RoomPlace filed for Chapter 11 bankruptcy in February 2024 to restructure its debts and close eight of its 26 stores that were located in Illinois, Indiana, and Wisconsin.. It blamed declining retail sales across the country and other challenges in the furniture industry.
Texas-based furniture chain Gallery Furniture on April 2 said it will close its Houston location on Post Oak Boulevard after operating the store for 16 years, but it had no bankruptcy plans.
Kimbrell’s Furniture closes its High Point, N.C., location.
Kimbrell’s
Kimbrell’s Furniture closes newest locationÂ
And now, historic Charlotte, N.C.-based furniture chain Kimbrell’s Furniture is closing its newest store location in High Point, N.C., after quietly closing five other stores over the last two years.
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The furniture store chain opened the High Point store in January 2023 in a 24,000 square-foot outparcel building that used to be occupied by a health food grocery chain, Earth Fare. The health food retailer opened in 2019 and operated for seven months before going out of business and filing for bankruptcy, the High Point Enterprise reported.
More bankruptcies:
Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy
Kimbrell’s, however, has not indicated any plans to file for bankruptcy, but it reportedly plans to sell the High Point location.Â
The Kimbrell’s store in High Point was hailed as its 50th store when it opened in January 2023, but a review of the company’s locations on its website on April 30, 2025, shows 45 stores, including the store that will be closing.Â
It’s not the first time Kimbrell’s has opened a 50th store. In November 1991, the furniture chain reportedly opened a 50th store in Spartanburg, S.C., on Asheville Highway, which is no longer open. And in 2014, it reportedly opened a 50th store in Goose Creek, S.C., which is still open.
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