People very rarely need to buy furniture. Usually, it’s a choice, and even then, you can usually scrounge up most items for very little on Facebook Marketplace or neighborhood message boards.

My wife and I, for example, once bought two twin beds still in their packaging from a planned bed-and-breakfast that never opened.

In cautious economic times, people can mostly pause, or even cancel, furniture purchases.

“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,” Laferriere, an assurance partner at Smith Leonard and member of its furniture practice group, told Homes.com.

Prices are not going to come down in the near future, which is something over which retailers don’t have much control.

“There will be some impact on pricing as their costs have increased (not only because of tariffs), which ultimately must be passed along to consumers,” he said. 

“Most ‘domestic’ manufacturers still have some exposure to tariffs, whether that be imported fabric, hardware, or other components; however, the average consumer does not shop for furniture every day or even every year, and many times buying decisions are made upon style or functionality rather than only price.

It’s a market that has led a number of long-time players either filing for bankruptcy or simply closing their doors. Pennsylvania’s Unclaimed Freight is joining that list as it started its going-out-of-business sale on Jan. 1 and will close forever at the end of February.

Unclaimed Freight is closing its doors forever

It’s important to note that it’s the Pennsylvania version of Unclaimed Freight that’s shutting down. A chain using the same name and operating in the Midwest is not affiliated or impacted, as it continues to operate normally.

The Pennsylvania version of Unclaimed Freight used to operate multiple stores, but is down to one location.

Signs reading “Wall to wall savings,” “Everything must go!” and “Store closing forever!” are displayed throughout the store, according to 69 News WMFZ.

The television station spoke with Unclaimed Freight’s manager, Robert Hahn, who has been with the company for 48 years. He told them that all sales are final, and store fixtures are also available for purchase.

“We’re very grateful to the Lehigh Valley community and everyone who has supported the business over the years,” Hahn told 69 News. “We’ve loved serving everyone.”

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Hahn, a nephew of Unclaimed Freight’s founder, Joseph Colabella, who launched the business in 1971, shared some of its history with the news channel.

“Colabella previously operated an Easton home décor shop and warehouse, known as Unclaimed Salvage & Freight, in the late 1960s and also briefly operated a store in Whitehall Township before opening Unclaimed Freight’s flagship store in Bethlehem a few years later,” Hahn said.

Unclaimed Freight timeline

• 1971 —chain founded: Unclaimed Freight began as a furniture and closeout retailer offering brand‑name furniture at low prices by purchasing closeouts, overstocks, and surplus. The business model emphasized value and discount pricing over high‑end showroom polish, according to Unclaimed Freight’s website.
• 1970s-1980s — regional growth: Throughout the 1970s and 1980s, Unclaimed Freight expanded its promotional furniture store format, operating multiple locations in Pennsylvania, New Jersey, and surrounding states, according to the Better Business Bureau.
• 1994 —first bankruptcy filing: Under new ownership after being sold in 1989, the company entered Chapter 11 bankruptcy protection in 1994 amid financial difficulties, reported Furniture Today.
• 1999 —new ownership change: The chain was sold again in 1999 to a Chicago‑based investment group led by Larry Manson, but continued to face operational and financial challenges, according to Furniture Today.
• 2002 —major store closures and corporate struggles: In the summer of 2002, Unclaimed Freight closed its Bethlehem, Pa., flagship store and several others due to cash flow issues and poor sales. The company planned a reorganization that ultimately included reopening some locations later in the year, shared the Better Business Bureau.
• Late 2002 —brand revival by founder: Founder Joe Colabella bought back the rights to the Unclaimed Freight name and assets from Wachovia Bank and announced plans to reopen multiple stores in Pennsylvania and New Jersey, investing in reviving the business, according to Furniture Today.
• 2003 — asset sales and store transfers: Some Unclaimed Freight stores were acquired by Diamond Furniture, which bought two Pennsylvania/New Jersey locations as part of ongoing retail consolidation, added Furniture Today.
• 2020s —present local discount stores: Today, the Unclaimed Freight name persists mostly as independent or small regional furniture outlets, not a large national chain. These stores still sell discounted furniture and accessories, often from closeouts and manufacturer overstocks, but have no affiliation with the store closing in Pennsylvania.
• Feb. 2026: The Pennsylvania company using the name Unclaimed Freight will close its doors forever.

People can often postpone a furniture purchase.

Shutterstock

Furniture industry hit by multiple problems

While President Donald Trump’s tariffs have created both higher costs and uncertain future costs for the furniture industry, rising shipping and freight prices have been a problem as well.

“Bulkier, heavier items are always harder to ship. And when cargo ships filled up, and ports backed up, air shipping wasn’t really an option,” Retail Dive reported.

Rick Jordon, a senior managing director in FTI Consulting’s business transformation practice, shared blunt thoughts as to why so many furniture businesses are failing.

“There’s low margin in furniture at the end of the day,” Jordon told Retail Dive. “It’s a cutthroat business.”

Even large players in the space are having trouble forecasting the future.

“I’ve talked in the past about how the overhang, a depressed housing cycle, has had on customers’ willingness to spend on their homes,” said Wayfair CEO Niraj Shah during his company’s fourth-quarter, 2024 earnings call.

“The forward outlook, especially in the core of our business, big and bulky furniture, is as unpredictable as any point in the past four years, with uncertainty over the state of inflation, global trade policy, and interest rates, among other factors.”

Freight costs are rising

• Freight trucking costs rose significantly in 2025, with the Producer Price Index (PPI) for general long‑distance less‑than‑truckload (LTL) freight up about 7.1% year over year, reflecting sustained cost pressure on shippers, according to Gain Consulting.
• Operating costs for truckload carriers continued to climb in 2025, with surveys showing inflation in truck operating expenses up roughly 2% compared with 2024, adding to upward pressure on freight rates, reported C.H. Robinson.
• Shipping cost increases are linked to fuel and compliance expenses, as higher fuel prices and regulatory requirements contribute to broader freight rate inflation in 2025, noted a Kay Shipping Services post on Linkedin.
• Tariffs and logistic bottlenecks (e.g., port congestion and container imbalances) in 2025 are cited by logistics analysts as additional factors driving freight rate volatility and cost increases for businesses, added the same article.

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