The furniture and mattress retail sector has faced financial distress in 2025, as smaller chains that compete against larger brick-and-mortar retailers like IKEA, Ashley Furniture, and Ethan Allen, have needed to close stores and, in some cases, file for bankruptcy and reorganize to survive.

A combination of fierce competition among all furniture stores and declines in sales in the industry has forced certain retailers into financial distress. A decline in sales in October 2025 may also lead to further financial distress and future bankruptcy filings.

Furniture sales declined in October

Furniture store sales in October 2025 declined 1.7% unadjusted compared to October 2024 and were down 0.8% seasonally adjusted from September 2025, the National Retail Federation reported on Nov. 10, according to Home News Now.

Furniture retailers have blamed the downturn in sales on a slowdown in the real estate market in recent years, driven by increased interest rates since the Covid-19 pandemic, which has curtailed consumer spending on new furniture.

Rising labor and product costs driven by inflation, increased tariff levies, and lingering effects from the Covid-19 pandemic have pushed furniture companies to file for bankruptcy.

Significant furniture retailer bankruptcy filings have included Worthy’s Run Furniture LLC, a furniture and custom wood cabinetry manufacturer and retailer, which filed for Chapter 11 bankruptcy protection on May 28 to reorganize its business.

5th Avenue Furniture files for bankruptcy after closing stores

Independent furniture retailer 5th Avenue Furniture, which closed two stores in Shirley, N.Y., and Medford, N.Y., in recent years, filed for Chapter 11 bankruptcy on June 6 on behalf of its Bay Shore, N.Y., location.

The parent company of 37-year-old mattress company American Mattress, based in Elk Grove Village, Ill., filed for Chapter 11 bankruptcy protection on July 6 and reported both assets and liabilities between $1 million and $10 million.

Furniture retailer bankruptcy filings:

• Worthy’s Run Furniture, Chapter 11, May 28, 2025
• 5th Avenue Furniture Chapter 11, June 6, 2025
• American Mattress, Chapter 11, July 6, 2025
• Walker Edison Furniture Company, Chapter 11, Aug. 28, 2025

American Mattress, owned by AFM Mattress Company LLC, operates 67 locations in five states.

Walker Edison Furniture Company and three affiliates filed for Chapter 11 bankruptcy protection on Aug. 28, seeking to quickly sell their assets to stalking-horse bidder Twin-Star International Inc., a leading furniture manufacturer, for $20 million.

Brenmark Inc., which does business as Landmark Furniture and Mattresses for Less, files for Chapter 11 bankruptcy protection.

Shutterstock

Landmark Furniture owner files for bankruptcy protection

And now the parent company of the Texas furniture and mattress chain Landmark Furniture filed for Chapter 11 bankruptcy protection to reorganize its business.

Brenmark Inc., which does business as Landmark Furniture and Mattresses for Less, filed its petition in the U.S. Bankruptcy Court for the Southern District of Texas in Houston on Nov. 9, according to Inforuptcy.

The Houston-based debtor listed $1 million to $10 million in assets and liabilities in its petition, BankruptcyObserver reported.

Brenmark did not indicate a reason for filing for bankruptcy in its initial court filings, but a recent lawsuit verdict might have something to do with the bankruptcy filing.

Brenmark has been battling a lawsuit since June 2021, which was filed against it by one of its employees who was injured at work, according to court papers.

A jury awarded over $342,000 to the plaintiff at an April 2024 Texas state court trial, which Brenmark appealed to the Fourteenth Court of Appeals in Texas, Justia U.S. Law reported. The appellate court overruled Bremark’s appeal on Aug. 21, 2025, and affirmed the judgment of the trial court

The Chapter 11 filing, however, places an automatic stay on all litigation and court actions while the bankruptcy case proceeds.

Brenmark’s bankruptcy counsel David L. Curry Jr. of Okin Adams LLP was not immediately available for comment.

More bankruptcy:

• 34-year-old casual dining chain files for Chapter 11 bankruptcy
• Major seafood company files for Chapter 11 bankruptcy
• 55-year-old women’s fashion company files Chapter 11 bankruptcy

Landmark Furniture, which a social media post said was established in 1997, operates five locations at 5900 North Freeway, No. 115, Houston; 5770 Farm to Market 1960 Road West, Houston; 4200 Pasadena Blvd., No. 120, Pasadena, Texas; 19060 Gulf Freeway, Suite A, Friendswood, Texas; 20465 US-59, Humble, Texas.

The family-run furniture retailer offers a full array of products for living rooms, dining rooms, bedrooms, mattresses, specialty seating, home office, game & theater room, décor, and home packages, according to the Landmark Furniture website.

Landmark Furniture locations

• 5900 North Freeway, No. 115, Houston
• 5770 Farm to Market 1960 Road West, Houston
• 4200 Pasadena Blvd., No. 120, Pasadena, Texas
• 19060 Gulf Freeway, Suite A, Friendswood, Texas
• 20465 US-59, Humble, Texas.

Related: 66-year-old appliance company liquidates in Chapter 11 bankruptcy