US Furniture Retailer American Home Furniture Liquidates After 90 Years
US-based American Home Furniture & Mattress has begun liquidating its two stores and all its assets. The company is winding down operations due to insufficient capital and rising costs.
According to a report from Bedding News Now, American Home Furniture & Mattress, a US-based furniture and mattress retailer with a 90-year history, has immediately initiated a liquidation process covering its two stores in Albuquerque, New Mexico, and all of its assets.
In a letter sent to supplier partners by Kenton Van Harten, Chairman of the Board and Chief Executive Officer, it was announced that the business and all of its property have entered an orderly liquidation process. Company management stated that they had tried all available recovery avenues, including discussions with suppliers, potential investors and financing providers, and alternative operating models. Despite all efforts, it was reported that the capital required to sustain inventory supply and financial balance could not be secured. The statement emphasized that product price increases caused by customs tariffs, rising fuel and transportation costs, and consumer reluctance toward high-budget purchases have created a general contraction in the retail sector.
Background
The family-owned company, which has a 90-year history, had earlier this year announced that it had entered a restructuring process under Chapter 11 and had closed its two stores in the Santa Fe area. As part of the bankruptcy protection process, the retailer had attempted to continue operations by keeping its two Albuquerque stores open. Ongoing cost pressures and capital shortages in the US furniture and home retail sector had previously led other established chains to undergo similar liquidation processes.
Why it matters
Liquidation decisions in the US furniture and mattress market make receivables security critical for manufacturers that supply upholstery fabric, mattress fabric and complementary home textile products to this sector. High freight costs and changing tariff costs are pressuring retailers' profit margins, and potential payment delays in the supply chain directly concern Turkish fabric exporters. The cautious stance of American consumers toward high-budget home furnishing purchases makes it necessary to closely monitor order volumes in the upholstery segment.
What members can do
Manufacturers exporting upholstery fabric, curtains and home textiles to the North American market should prioritize receivables insurance and collateral mechanisms for deferred deliveries with retail chains. Exporters should develop flexible order models that ease the inventory burden of buyers in markets facing cost increases and clarify freight provisions in their contracts. Additionally, companies should diversify their customer portfolios with alternative collections offering cost advantages that suit the market's cautious spending trends.
This content was compiled with AI assistance from the cited source — Bedding News Now. (EU 2024/1689 Art. 50)
