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Key Points Furniture sales have sharply declined, mirroring the 2008 financial crisis downturn. Another large furniture chain has decided to close stores Multiple major furniture chains are closing stores or filing for bankruptcy amid continued weak demand. The furniture business, which saw a spike in sales during the Covid pandemic, has largely gone in the other direction. “Our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis,” Wayfair CEO Niraj Shah said in a press release. “Customers remain cautious in their spending on the home.” Any reference to the bleak days of the 2008 housing crisis is troubling, but furniture companies are facing a number of headwinds. First, some spending was pulled forward during the Covid pandemic. Second, the overall economy is making consumers cautious when it comes to larger purchases. JB Hunt Transports Chief Operating Officer Nick Hobbs called demand for furniture delivery “historically low,” during a July earnings call. “The end markets in this business remain challenged with demand for big and bulky products still muted, with soft demand for furniture, exercise equipment and appliances,” Hobbs said. Furniture sales are part of a broader sense of caution from Americans when it comes to larger purchases. “Our findings reveal that many shoppers are approaching the holidays with caution and practicality, adjusting their budgets and habits accordingly. Many consumers plan to scale back on discretionary and semi-discretionary purchases, a shift that has prompted some to begin their holiday shopping earlier than usual with a stronger focus on essentials,” according to McKinsey’s State of the U.S. Consumer report. This pullback has led to a number of furniture chains closing locations, filing for Chapter 11 bankruptcy, or otherwise making the decision to pullback spending. Now, American Signature Furniture has become the last chain to close multiple stores and leave a key market. American Signature Furniture closes stores American Signature Furniture (ASF) plans to close its four Nashville-area stores as part of a broader initiative to realign its market presence and strengthen operations in its top-performing regions. The company tried to sell the closures as a positive for its overall health. “ASF continues to operate more than 120 stores across the United States and remains well-positioned for continued growth,” it shared in a press release. To assist with the store closing process, ASF has partnered with SB360 Capital Partners, a nationally recognized firm specializing in retail transitions and large-scale sales events. “Store closing sales are underway at all four Nashville American Signature Furniture locations, offering shoppers 20–40% off a wide selection of home furnishings. Customers can take advantage of significant savings on everything from living room, dining room, and bedroom collections to décor, lighting, mattresses, and rugs,” the company shared. More Bankruptcy: Hollywood movie and TV company files for Chapter 11 bankruptcy Major seafood company files for Chapter 11 bankruptcy Women’s fashion company files Chapter 11 bankruptcy The company wants to make it clear that these closures are strategic. “ASF’s exit from the Nashville market is part of the company’s ongoing effort to optimize its store portfolio and strengthen operations in markets where it continues to see the greatest opportunity for growth,” it added. American Signature Furniture’s key changes: American Signature Furniture recently shared that it would exit the Tennessee market, closing several Nashville‑area stores (Clarksville, Franklin, Madison, Murfreesboro). These closures are part of a strategic market retreat. ASF announced it will close four Nashville‑area locations (Clarksville at 2821 Wilma Rudolph Blvd; Franklin at 1770 Galleria Blvd; Madison at 2130 Gallatin Pike N; Murfreesboro at 2075 Old Fort Pkwy). PR Newswire+2The Street+2 The store‑closing sales at those four locations began on Oct 16, 2025. ASF stated it continues to operate more than 120 stores across 17 states. SOURCE: PR Newswire The company cited “difficult business conditions” and is making adjustments (e.g., market exits, workforce changes) to optimize operations. Source: Furniture Today The parent company, American Signature, Inc., continues to own and operate the retail brands American Signature Furniture and Value City Furniture. The company is investing in supply‑chain and technology upgrades including a warehouse and order management system overhaul) to support ongoing operations. Source: Digital Commerce 360 These furniture chains have close stores in 2024 and 2025 Badcock Home Furniture & More: Announced it will close all 370 stores across the Southeast after its parent company filed for bankruptcy. Source: PacerMonitor American Freight Furniture, Mattress, Appliance: A national furniture & appliance retailer announced full chain closure of all 328 stores starting November 2024 amid bankruptcy filing. Source: PacerMonitor At Home Group: Filed for Chapter 11 in June 2025 and announced closures of 26 stores (later updated to 29-30) of its 260 stores. Emerged from bankruptcy in October. Source: PacerMonitor The RoomPlace: Filed for Chapter 11 on February 2, 2024; announced that it would close all remaining locations. Source: PacerMonitor Conn’s HomePlus: The home goods/furniture retailer filed for bankruptcy in July 2024 and planned to permanently close all of its remaining 174 locations. Source: PacerMonitor 5th Avenue Furniture Warehouse Inc.: Filed for Chapter 11 in 2025. Current status shows only a single location remaining from earlier multiple stores. Source: The Street Trees n Trends: Home‑goods and decor chain closing all six of its stores in 2025, no bankruptcy. Source: WhatNow American Mattress: Reported to have filed for Chapter 11 in July 2025, operating nearly 100 stores at the time. Source: PacerMonitor About the author Daniel Kline serves as co-editor-in-chief of TheStreet. He has more than 30 years of experience covering retail, restaurants, travel, and technology. He's the creator of Come Cruise With Me, and a noted expert on cruise travel. He has been passionate about the changing state of retail and loves to show why companies succeed or fail.
