This past week, the furniture industry navigated a dynamic landscape marked by significant retail challenges, evolving trade policies, and continued advancements in technological integration. From major bankruptcy filings to the pervasive impact of tariffs and the efficiency gains from AI, the headlines underscore the need for agility and strategic adaptation within the sector. This period demands strategic adaptation and agility from all players in the furniture sector, as the industry grapples with both significant hurdles and promising innovations. Hereâs a concise overview of the most impactful developments and key takeaways for furniture professionals.
Key Furniture News & Trends
-
At Home Files for Chapter 11 Bankruptcy
The bankruptcy of At Home, a prominent furniture and home dĂŠcor retailer, on June 16, 2025, underscores the intense economic pressures currently facing the retail sector. The company cited âbroader economic and retail-specific market pressuresâ as the primary drivers for its Chapter 11 filing. These pressures include âunsustainable customs costsâ stemming from higher tariffs, rising borrowing rates, and persistent inflation, all of which have collectively diminished demand within the home dĂŠcor market. This event is not an isolated incident but rather indicative of a broader trend affecting brick-and-mortar retailers. Other major players like Big Lots, Joann Fabrics, Kohlâs, JCPenney, Macyâs, and Party City have also experienced similar financial difficulties and store closures this year. The anticipated transition of At Homeâs ownership to a consortium of hedge funds and investment companies suggests a financial restructuring aimed at creating a leaner and potentially re-strategized business model, emphasizing the increasing influence of financial investors in distressed retail environments.
Published: June 16, 2025
Popular home goods store set to close stores across 13 states - full list - The Mirror US -
Steel and Aluminum Tariffs Poised to Impact Domestic Furniture Industry
The recent decision by the Trump administration to double steel and aluminum tariffs to 50% is creating significant cost burdens and supply chain complexities for domestic furniture manufacturers. This policy change directly affects companies that rely on imported metal components, such as drawer glides, hinges, steel seating mechanisms, and metal swivel bases, leading to expectations of increased material expenses. Manufacturers are actively seeking ways to counteract these rising costs. For instance, some upholstery producers are looking to limit their reliance on materials sourced directly from China, which still faces a 30% tariff, by exploring alternative suppliers in other Asian countries where tariffs might be lower, such as 10%. While some companies, like Craftmaster Furniture, are currently absorbing these additional costs to maintain competitive pricing and operate on tight margins, a prolonged period of elevated tariffs will likely necessitate widespread price increases for consumers. This situation underscores the need for continuous adaptation in supply chain management and pricing strategies across the furniture industry, potentially accelerating a broader trend towards more diversified or localized sourcing if domestic options become more economically viable.
Published: June 10, 2025
Steel, aluminum tariffs likely will impact domestic furniture industry - Home News Now -
AI Implementation Boosts Broad River Retailâs Service & Delivery
Broad River Retail, an Ashley licensee, has achieved substantial improvements in its customer engagement and last-mile logistics through the 18-month implementation of Package.aiâs AI-native platform. This strategic adoption of artificial intelligence has yielded impressive results, including a notable 10-point increase in Net Promoter Score (NPS), elevating it to 98. Furthermore, the company reported a significant 20% reduction in inbound customer service calls and maintained delivery confirmation rates consistently above 90%. The platformâs success is attributed to its advanced features, such as two-way texting, self-service rescheduling capabilities, dynamic routing optimization, and the integration of an AI assistant named âJenny.â These tools have streamlined operations and profoundly enhanced the overall customer experience. The outcomes from Broad River Retailâs experience demonstrate how AI can be a powerful asset for furniture retailers, not only in improving operational efficiency but also in elevating customer satisfaction during the crucial post-purchase phase. This development sets a new standard for seamless customer journeys within the industry, suggesting that integrated AI solutions are becoming increasingly vital for competitive advantage.
Published: June 11, 2025
AI Implementation Yields Service and Delivery Gains at Broad River Retail - Furniture World Magazine -
Hooker Furnishings Reports Q1 2026 Fiscal Results Amid Market Challenges
Hooker Furnishings Corporation recently released its operating results for the first quarter of fiscal 2026, which concluded on May 4, 2025. The report indicates a challenging period with consolidated net sales decreasing by 8.8% to $85.3 million compared to the previous year. Despite this decline in revenue, the company demonstrated resilience by successfully reducing its operating loss by 31%, bringing it down to $3.6 million. This improvement in profitability can be attributed to proactive cost-saving initiatives that were implemented during the second half of the prior fiscal year, alongside broader reductions in operating expenses. A significant factor contributing to the overall sales downturn was a substantial double-digit decrease in sales at Home Meridian International (HMI), a segment that operates within the mid-price range and has been particularly affected by import tariffs. In response to these market dynamics, Hooker Furnishings is strategically adapting its supply chain by stocking inventory in a leased warehouse in Vietnam. This move is designed to enhance product flow, optimize inventory turns, and ultimately improve margin potential, showcasing an agile approach to navigating current market complexities and maintaining financial stability.
Published: June 15, 2025
http://hfbusiness.com/hfbnow/ArticleId/27141/hooker-furnishings-corp-reports-first-quarter-2026-fiscal-results -
Broader Furniture Industry Faces Widespread Financial Headwinds
Beyond the high-profile bankruptcy of At Home, the furniture industry as a whole is contending with a range of pervasive financial headwinds. These challenges include escalating labor and product costs, driven by persistent inflation, coupled with higher interest rates on debt obligations and fierce market competition. A significant contributing factor to reduced consumer demand for new furniture is the slowdown in the real estate market, which creates a ripple effect throughout the entire sector. This difficult economic climate is leading to struggles for various entities within the industry, impacting not only large retailers but also smaller and specialized manufacturers. Recent examples include Worthyâs Run Furniture LLC filing for Chapter 11 bankruptcy and Progressive Furniture announcing its closure due to issues with its primary supplier in Mexico. These instances demonstrate that the economic pressures are widespread, affecting different segments of the furniture value chain. The closure of Progressive Furniture due to a supplier issue also underscores the interconnectedness and fragility of global supply chains, where disruptions at one point can lead to significant consequences for others. This comprehensive view reveals a sector under considerable financial strain, requiring strategic navigation and adaptation from all participants.
Published: June 10, 2025
https://www.thestreet.com/retail/another-major-furniture-chain-closes-stores-no-bankruptcy
Tools & Tips
The furniture industryâs increasing reliance on digital tools for design, visualization, and operational efficiency is becoming increasingly apparent. New software releases and strategic applications of existing technologies are driving innovation and fostering sustainable practices within the sector. This evolution highlights the critical role technology plays in enhancing competitiveness and meeting the evolving demands of the market.
-
Smart Furniture Innovations for Enhanced Living
In 2025, home tech is reaching new heights, and smart furniture is leading the charge. This new generation of furniture combines modern design with cutting-edge features, offering unprecedented comfort and convenience. Key innovations include wireless charging capabilities in sofas and coffee tables, voice-activated adjustments for hands-free control, and health-monitoring features in smart beds to track sleep patterns. These advancements aim to streamline daily life, reduce clutter, and enhance overall well-being within the home environment.
The New Smart Furniture Revolution in 2025 -
Dynamic Ergonomic Seating and AI-Powered Sleep Systems
June 2025 furniture trends highlight innovations focused on adaptability and wellness. For professionals and gamers, new dynamic ergonomic chairs like the âLibernovo Omniâ offer motorized lumbar support, a Bionic FlexFit backrest, and a massage-enabled mode, designed for movement and health. Additionally, AI-powered sleep systems are emerging, featuring advanced functionalities such as zero-gravity elevation and surround sound, aiming to optimize sleep quality and overall well-being. These developments reflect a growing emphasis on furniture that actively supports user health and comfort.
Top 20 Furniture Trends in June
Fun Fact
Did you know that the modern office chair, complete with wheels, was invented by none other than Charles Darwin? He reportedly modified his own chair by adding wheels to enable him to move more swiftly around his study while meticulously examining specimens. This seemingly simple modification significantly boosted his efficiency, serving as a compelling example of how practical needs and a desire for improved productivity can directly drive innovation in furniture design. This historical anecdote highlights that advancements in furniture are often born from a direct response to human requirements, transcending traditional design fields.
Fun History of Modern Furniture | Historical Furniture Facts
Weâd love to hear from you!
Have you participated in any Furniture events or utilized new Furniture tools recently? Share your experiences or insights with usâweâre featuring selected community voices in next weekâs edition.