Major furniture company shuts down and liquidates; no bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The furniture industry has faced economic challenges in the first half of 2025, with several manufacturers shutting down operations, blaming financial distress caused by major headwinds.

Among the economic issues companies have dealt with are the usual suspects, such as rising labor and product costs driven by inflation, rising interest rates on debt, and reduced customer foot traffic over concerns about the economy.

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Major North Carolina furniture manufacturer and supplier Progressive Furniture, which provides products to major retailers, said it will close down its business at the end of the year and lay off all 30 of its employees, after its primary supplier in Mexico, which provided 60% of its products, decided to close its business.

Progressive Furniture, a subsidiary of ready-to-assemble furniture company Sauder Woodworking, sells its products through Walmart, Target, Home Depot, Lowe’s, Amazon, Wayfair, and other furniture retailers.

The company, which operates a warehousing and distribution plant in Claremont, N.C., said it will fulfill existing orders and honor warranties until it closes.

It has no plans to file for bankruptcy.

Furniture manufacturers shut down

Custom wood cabinetry manufacturer and retailer Worthy’s Run Furniture LLC filed for Chapter 11 bankruptcy protection on May 28 to reorganize its business. The Hagerstown, Md., furniture company did not indicate a reason for filing for bankruptcy in its petition.

Kith Furniture, manufacturer of bedroom furniture, entertainment centers, and dining room pieces, shut down its Alabama factory, which employed 59 workers

The Haleyville, Ala.-based furniture company, which was founded in 2011, at one time employed 260 workers at five plants in Alabama.

The company has not filed for bankruptcy.

The case goods furniture manufacturer specializes in bedroom pieces, including headboards, dressers, chests, nightstands, mirrors, metal beds, entertainment consoles, dining tables, accents, and barstools.

Elk Home is liquidating all of its furniture and lighting inventory.

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Elk Home to liquidate at auction

Finally, Elk Home, a major furniture and interior lighting manufacturer and supplier to huge retailers, is closing its facilities and liquidating all of its products and assets. The company has not filed for bankruptcy at last check.

The Nesquehoning, Pa.-based company revealed on July 7 that it had hired GA Group, an asset disposition, valuation, appraisal, and real estate services firm, to manage the complete liquidation of Elk Home’s inventory as the furniture and lighting supplier shuts down after over 40 years in business.

More closings:

“Since 1983, Elk Home has been at the forefront of high-quality home furnishings, collaborating with top retailers and designers across North America,” Seth Marks, senior vice president and head of wholesale solutions for GA Group, said in a statement. “We are excited to facilitate improved procurement costs, with more than $46 million of factory-fresh inventory located in the company’s 950,000 sq. ft. Georgia distribution center.”

“This is an exceptional opportunity for home furnishings businesses to mitigate tariff challenges and purchase directly from the liquidation process, below manufacturers’ costs,” Marks said.

GA Group is conducting an auction of Elk Home’s inventory at its 950,000 square-foot Rabun Gap, Ga., distribution center through July 10, 2025, at 5 p.m. Eastern time. Elk Home closed its Dallas showroom in June 2025, as well as its High Point, N.C., showroom in April 2025.

The company had already closed showrooms at America’s Mart in Atlanta and at World Market Center in Las Vegas.

Elk Home, which was founded in 1983, supplies major retailers, such as Walmart, Target, Lowe’s, and Amazon, with upscale lighting and high-quality furniture and décor for a luxury lifestyle.

The furniture company’s products include modern dining tables and chairs, accent and occasional tables, consoles, desks, bookcases, and storage solutions, such as cabinets, credenzas, and chests. It also provides stools, benches, ottomans, and select outdoor furniture.