Economic challenges in the furniture retail sector have led retailers to close stores to reduce their financial distress.
A combination of factors, such as rising labor and product costs driven by inflation, increased tariff levies, and lingering effects from the Covid-19 pandemic, has pushed furniture companies to the edge of the cliff.
The economic distress has been so bad that some furniture retailers have decided to shut down their businesses, including Salisbury, Md.-based Outten Brothers Home Furnishings and New Deal Furniture in El Paso, Texas.
The furniture industry has been volatile since the beginning of summer, as new orders declined by 9% in June compared to May 2025, then rose by 6% in July compared to June, according to SmithLeonard Accountants & Consultants’ September 2025 Furniture Insights.
New orders and shipments have declined year to date
New orders are down 1% year to date through July 2025, compared to the same period in 2024.
Furniture shipments declined by 2% in July compared to June 2025, but shipments increased by 3% in July compared to July 2024. Shipments declined by 1% year to date through July compared to the same period in 2024, the report said.
Furniture industry volatility
- Furniture new orders declined by 9% in June 2025
- Furniture new orders increased by 6% in July 2025
- Furniture new orders decline by 1% year to date in July 2025
- Furniture shipments declined by 2% in July 2025 compared to June 2025
- Furniture shipments increased by 3% in July 2025 compared to July 2024.
Inventories and employee/payroll levels “are materially inline with recent months and 2024,” but there has been a drop-off in employees.
“The gradual decline in employees over the last 6 months continues to imply companies are allowing normal attrition to occur without rushing to find replacements,” the report said.
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American Signature Furniture shuts Nashville stores
Iconic furniture retail chain American Signature Furniture, one of the nation’s major home furnishings retailers, will close all four of its Nashville-area stores and exit Tennessee to realign its market presence and strengthen operations in its top-performing regions, according to an Oct. 16 company statement.
American Signature Furniture’s parent American Signature Inc., which was established in 1948, said that it would close the company’s stores in Clarksville, Franklin, Madison, and Murfreesboro, Tenn., but did not reveal the date of the stores’ last day of operation.
The 77-year-old furniture chain, which also includes Valley City Furniture stores, operates 122 stores in 17 states, including Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
Furniture chain’s layoffs unknown
The furniture chain employs over 3,200 workers across all of its stores, but did not reveal the number of employees at its Tennessee stores or indicate if it will lay off any of its employees.
The furniture chain also did not indicate whether it filed a Worker Adjustment and Retraining Notification Act notice for its employees.
The Columbus, Ohio-based chain began store closing sales at the four Nashville-area stores, offering customers 20% to 40% off on a wide variety of home furnishings, including living room, dining room, and bedroom collections, as well as décor, lighting, mattresses, and rugs.
More closings:
- Major trucking company closes Home Depot distribution facility
- 63-year-old bankrupt retail chain closes all stores permanently
- Discount retail chain closes half its store locations
“This is a strategic business decision focused on our long-term growth priorities,” American Signature’s Chief Operating Officer Pat Sanderson said in a statement.
“While we’re sad to say goodbye to Nashville, we’re incredibly grateful to our customers here who’ve welcomed us into their homes over the years. We invite them to take advantage of this limited-time event, where they can find beautiful furniture at truly exceptional values,” Sanderson said.
American Signature Furniture stores in 17 states
- Delaware
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Maryland
- Michigan
- Missouri
- New York
- North Carolina
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Virginia
- West Virginia.
Related: Another furniture retailer closes, liquidates stores
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