Furniture is an important aspect of a home’s environment, and consumers are always disappointed whenever their favorite source of home furnishings closes down.
The success of the furniture sector often depends on the performance of the residential real estate market.
As home sales rise, so do furniture sales, since buyers also purchase furniture for their new houses. When home sales drop, the furniture sector suffers.
Home sales declined in 2025
Total home sales for 2025 were about 1,000 lower than in 2024, registering 4.061 million compared to 4.062 million, which was also the lowest annual home sale total since 1995, according to Realtor.com.
“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 in November 2025.
“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,” Laferriere added, as TheStreet’s Daniel Kline reported.
The decline in home and furniture sales contributed to recent distress in the furniture retail industry, as furniture chains announced closings and bankruptcies at the end of 2025.
American Signature, Value City liquidate
American Signature Inc., which operated 89 American Signature Furniture and Value City Furniture stores, filed for Chapter 11 bankruptcy in November 2025, and on Jan. 10 said that it would close and liquidate all of its stores.
In certain other cases, distress and bankruptcy did not play a role in furniture store closings. Owners of some furniture chains have recently decided it’s time to retire and shut down their stores.
The chains will cease to exist after going-out-of-business sales, since the owners are not selling the businesses to continue operating.
Kasala Modern Home Furnishings is selling its entire inventory at huge discounts and closing its stores, as its owners plan to retire.
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Kasala Modern Home Furnishings closes
Furniture store chain Kasala Modern Home Furnishings is closing down its three stores in the Pacific Northwest, as the owners plan to retire from the industry and focus on other business and personal interests, according to its website.
The Seattle-based furniture chain rolled out “The Great $5 Million Store Closing Sale” with a private sale that began Feb. 4 and expanded to the general public on Feb. 6, seeking “to sell our entire and complete stock to the bare walls as quickly as possible,” according to a message on its website.
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
“For over 39 years, Kasala Modern Home Furnishings has been the premier independent furniture destination in Seattle and the Pacific Northwest with exceptional style, outstanding values, and unique pieces you can’t find anywhere else,” Kasala said in a statement.
“We have enjoyed serving our tens of thousands of customers over many decades,” the statement said. “After much consideration, we have decided to close our three stores and retire from the furniture business to focus on other business and personal interests.”
Chain awarded customer $1000 shopping spree
The furniture chain closed its stores to mark down its prices in the days before its special sale for private customers and special guests on Feb. 4-5. The chain also had a drawing for a $1,000 shopping spree for its private customers and special guests.
The furniture company, with locations in Seattle, Bellevue, and Tukwila, Wash., offers a wide variety of sofas, sectionals, lounge chairs, dining tables and chairs, bedroom furniture, pillows, storage, area rugs, lighting, design objects, and wall decor.
More store owners plan to retire
Another furniture store chain’s owners also plan to liquidate all of their inventory, close their stores, and retire.
Miramar Beach, Fla.-based Tuskers, on Dec. 26, said it would begin final liquidation sales and shut down its Tuskers Home Store and Tuskers Furniture & Patio stores, as the owner decided to retire.
In addition to selling all of its inventory, the furniture chain said it will also sell its Tuskers Home Store showroom location.
Furniture brands available at Kasala:
- BDI
- Bitossi
- Bosa
- Calia Italia
- Cattelan Italia
- Chilewich
- Della Robbia
- Donna Wilson
- Huppe
- Jonathan Adler
- Jonathan Louis
- Luceplan
- Margo Selby
- Midj
- Miniforms
- Natuzzi
- Rug & Kilim
- Seletti
- Saba Italia
- Wallace Sewell
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