The furniture and home furnishings sector struggled in 2025, as rising product and labor costs driven by inflation and slower sales as a result of a housing slump caused economic issues for retailers.
The furniture industry continued to face a housing slump in 2025, as total home sales for the year were flat, registering 4.061 million compared to 4.062 million. This was also the lowest annual home sale total since 1995, according to Realtor.com.
Furniture sales declined in 2025
The housing slump affected furniture purchases, as sales declined by 0.82% for 2025, compared to 2024 unadjusted, according to the CNBC/National Retail Federation Retail Monitor.
For January 2026, furniture and home furnishings sales declined 0.31% month over month seasonally, the report said. February results have not been released yet.
The furniture downturn has not only affected U.S. companies, but also a major global outdoor furniture maker that’s folding up its tent and going out of business.
Outdoor furniture manufacturer and retailer ScanCom International is closing down its business.
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Outdoor furniture maker ScanCom closes
Major global outdoor furniture manufacturer and dealer ScanCom International has ceased operations after facing challenges from the Covid pandemic that it could not overcome.
The Copenhagen-based global designer and manufacturer of outdoor furniture is shutting down its business after attempting an unsuccessful turnaround over the last two years, according to a March 3 company statement.
ScanCom’s demise follows other niche furniture brands’ store closings, which occurred for a variety of reasons.
Furniture stores shut down locations
Vintage mid-20th-century furniture store Machine Age in Boston is closing down its business in early 2026 after conducting a clearance sale and auction of all remaining inventory, as the longtime owner has decided to retire.
Restoration Hardware said it will close its RH Outlet location in Milwaukee on March 1, as it is being converted to an approved hotel use.
The luxury furniture brand did not make a statement with a reason for the closing, other than a note outside the store announcing the closure.
ScanCom’s closing, however, was a pure economic solution to a failed restructuring.
Covid pandemic too much for ScanCom
Following the Covid pandemic, the market shifted drastically, and the challenges ScanCom faced proved too great to overcome, despite efforts to restructure with external consultants, the company statement said.
The company’s focus has shifted toward a controlled shutdown of its business, focusing on protecting the customers who have already placed orders with ScanCom, and the discontinuation of its remaining manufacturing functions in Vietnam and elsewhere.
ScanCom’s products consist of various outdoor tables, chairs, benches, coffee tables, sofas, loungers, lounge chairs, chaise lounges, wheel loungers, and a variety of outdoor sets. Products are available through ScanCon Outlet Shopping.
“We want to ensure a proper and decent handling of our skillful and loyal employees we have at the company in line with our values,” ScanCom International Chairman Peter Andsager said.
“We are collaborating with the relevant authorities and unions to facilitate as smooth and good a transition as we can for our employees, both in Vietnam and our other locations around the world, while also upholding our commitments to our customers and partners,” Andsager said.
More closings:
- Bankrupt restaurant chains permanently close popular locations
- Major retail chain closes 35 stores nationwide, no bankruptcy
- Another major retail chain closes warehouse operations
The company did not reveal how many jobs would be lost in the closing.
ScanCom was founded in Korsor, Denmark, in 1995 and had commercial and production operations in several countries, including Vietnam, Brazil, Indonesia, Germany, the U.K., and Spain.
In addition to its manufacturing in Vietnam, the company operates a showroom in Ho Chi Minh City, Vietnam.
ScanCom’s parent company Lars Larsen Group A/S purchased 100% of the company from its founder Boje Bendtzen in 2019.
ScanCom’s outdoor products:
- Tablesand chairs
- Benches
- Coffee tables
- Sofas
- Loungers
- Lounge chairs
- Chaise lounges
- Wheel loungers
- Outdoor furniture sets Source: ScanCom Outlet Shopping
Related: 90-year-old furniture chain closes shops in Chapter 11 bankruptcy