This Beloved Furniture Store Has Just Filed for Bankruptcy
The pandemic has sealed the fate of another major retailer.
Countless businesses have folded under the weight of the pandemic, and now, another one bites the dust. The beloved furniture store Furniture Factory Outlet has officially filed for Chapter 11 bankruptcy, with arrangements to sell the business to their rival, American Freight, according to The Wall Street Journal.
The chain, which had recently closed half of its 68 nationwide locations, sealed the deal after being battered by cashflow and supply chain issues amid the pandemic. These "dropped the Company's revenue to nearly zero overnight," the company’s CFO and COO, Donald Roach, reported in official court documents.
Their closing also signals larger problems that the pandemic has caused, and could be a bellwether for similar businesses. "Raw materials have been harder to acquire, which has impacted manufacturers' ability to produce goods," said Roach. "The pandemic has also impacted manufacturing safety which has lessened the amount of finished goods available." As Roach described, the store's revenue had been "choked by the lessened inventory supply chain."
Until its closure, the Ohio-based retailer had a strong presence in the midwest and south central region of the U.S.
Wondering which other businesses have closed amid the pandemic? Read on for four more major companies that are shuttering their doors due to COVID, and for another closure that people are mourning, check out This Beloved Department Store Is Closing in 38 States.
While Columbia Sportswear hasn’t gone completely under, a 23 percent drop in third quarter earnings prompted the company to close many of its storefront locations. Tim Boyle, president and CEO of Columbia, explained that people’s reluctance to shop in-person during the pandemic accounted for the dramatic drop in earnings.
"While September was our strongest month of the quarter in our U.S. direct-to-consumer business, we have not seen a sustained improvement in brick-and-mortar store traffic to date," Boyle said in a statement. "We anticipated traffic in these markets to remain depressed until tourism resumes." And for more on COVID closures, check out These 2 Major Mall Chains Just Filed For Bankruptcy.
Yes, you read that right. Starbucks, one of the biggest brands in the country, has announced that they will close 800 locations in the U.S. and Canada by this time next year. The coffee giant also plans to close another 250 international locations within a year’s time—the result of an eight percent dip in global revenue since last year. And for another coffee chain that’s majorly downsizing, check out Your Dunkin' Donuts Could Be Closing for Good by the End of the Year.
Pet food and supply store Pet Valu has announced its plans to close all of its stores and warehouses across the U.S. "The company's stores have been significantly impacted by the protracted COVID-19-related restrictions," Pet Valu chief restructuring officer Jamie Gould said in a statement. "After a thorough review of all available alternatives, we made the difficult but necessary decision to commence this orderly wind down," Gould added.
Beloved children’s clothing retailer Carter's and its sister company Osh Kosh B’Gosh announced in an Oct. 23 earnings call that they planned to close 200 brick-and-mortar locations by next year, accounting for 35 percent of their total store count. The company dates back to 1865 and is, according to their own website, the largest branded marketer of baby and children's clothing in the U.S.
Still, their business model was not immune to the effects of the pandemic. "With children starting their school year learning virtually at home, there was less of a need to shop for back-to-school outfits," said Michael Casey, the company's CEO and chairman.