In a nervous economy where people worry about rising costs and potentially losing their jobs, many people cut back on discretionary spending. If you’re worried about your finances and paying your everyday bills, you probably don’t replace your living room set or redesign your kitchen.

“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,” Mark Laferriere, an assurance partner at Smith Leonard, told Homes.com.

He did, however, have some optimism that things could turn around.

“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.

For Country Willow, a giant New York-area furniture store and design center, that turnaround won’t happen soon enough. The furniture brand has filed for Chapter 7 bankruptcy and will be liquidated.

Country Willow files Chapter 7 bankruptcy

When consumers visit the Country Willow website, they’re greeted with a message that says the “Showroom is temporarily closed.” In addition, although the company’s social media sites make no mention of its Chapter 7 filing, it did formally file for Chapter 7 bankruptcy on Feb. 2, according to documents filed on Pacer Monitor.

A listing on Inforuptcy also shared the filing details listing it as a “no asset” Chapter 7 bankruptcy.

“Sources familiar with the situation said Planned Furniture Promotions has been communicating with the retailer and is expected to play a role in handling the company’s dissolution,” Furniture Today reported.

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

Until 2024, the company operated under the Country Willow name before rebranding as Willow Furniture & Design, “a name that reflects our broader range of styles, and our commitment to timeless design and forward-thinking interiors,” the company shared on its website.

The company’s legal name on its Chapter bankruptcy filing remains Country Willow.

Country Willow/Willow Design Chapter 7 bankruptcy key facts:

• Company:Country Willow Ltd., a New York-area home furnishings retailer also doing business as Willow Furniture & Design, known for furniture, home décor, and interior design services.
• Location: Bedford Hills, New York (primary showroom).
• Filed:February 2, 2026 (Voluntary Chapter 7 bankruptcy petition).
• Court: United States Bankruptcy Court, Southern District of New York (Case No. 7:26-bk-22112).
• Estimated assets: $1 million to $10 million
• Estimated liabilities: $10 million to $50 million
• Number of creditors listed: 50 to 99
• Liquidation: As a Chapter 7 case, the company will be liquidated, meaning remaining assets are sold by a trustee to pay creditors.
• Liquidation Partner:Planned Furniture Promotions, a retail liquidation and promotional events firm, may be involved in handling closures and sales events related to the case. Sources: Pacer Monitor, Inforuptcy, Furniture Today

Furniture stores have struggled as consumers have pulled back spending.

Shutterstock

A number of furniture retailers have filed bankruptcy

• Circle Furniture, a 70-year-old New England furniture chain, formally filed for Chapter 7 on Jan. 30, 2026, after closing its nine stores in December 2025 with assets of $1 million to $10 million and liabilities of $10 million to $50 million, according to documents on PacerMonitor.
• American Signature Inc. (American Signature Furniture & Value City Furniture): Initially planned to close 33 underperforming stores, but eventually all remaining 89 stores entered going-out-of-business sales as no buyer emerged, according to a press release.
• Kasala Modern Home Furnishings (Seattle): Recently closed all its locations (three showrooms) and launched liquidation sales in early February 2026, according to Seattle Red.
• Badcock Home Furniture: This southeastern U.S. furniture retailer completed liquidation by late 2024 after its parent company faced financial distress, reported Furniture Today.

That pullback is something many consumers, myself included, have experienced, opting to delay large discretionary purchases such as furniture amid economic uncertainty.

“Across income groups and generations, sentiments reflect a growing sense of caution and uncertainty,” according to a Dec. 2025 McKinsey study. “More individuals express mixed feelings about the economy, highlighting how economic pressures are taking a toll on consumer confidence.”

That’s a sentiment Alix Partners Randy Burt echoed in the global consulting firm’s 2026 Global Consumer Outlook.

“Consumers across virtually every demographic are resetting their household budgets,” said Randy Burt, Americas leader-consumer products at the global consulting firm. “Younger shoppers and high-income earners — both traditionally more resilient — are signaling a retreat. This reflects not only the lingering impact of inflation and muted wage growth, but a broader shift toward more selective, value-driven consumption.”

Related: 106-year-old retailer closing US stores in Chapter 11 bankruptcy