Even a Chapter 11 chapter that results in a liquidation cannot kill some manufacturers.
Huge Heaps, for instance, noticed a number of low cost retailers take over a few of its areas whereas one rival purchased its title and reopened some closed shops underneath the Huge Heaps banner. Mattress Bathtub & Past has additionally survived a chapter public sale, seeing its title bought to Overstock.com which then adopted it for the corporate, whereas opening some new shops.
Lifeless in retail usually means “dead” like in a horror film. Positive, you killed Jason or Freddy, however no matter magic evil they’ve at all times brings them again. In some circumstances, in fact, it is simply greed, and bringing Michael Myers or Pinhead again does not even should make sense.
That occurs in retail, too, as chains usually refuse to remain useless. That was the case with RoomPlace, a 100-year-old furnishings chain that died its first loss of life after a liquidation in August, 2024.
Turned out that was solely a flesh wound, for the reason that chain made an unlikely brick-and-mortar comeback underneath the title Harlem Furnishings.
Harlem Furnishings nonetheless operates on-line.
Picture supply: Harlem Furnishings
Harlem Furnishings title was a nod to the previous
After RoomPlace liquidated its property, it reopened 4 shops underneath the Harlem Furnishings title. That title was a nod to its previous and a kind of return for the corporate.
At time of the corporate’s Chapter 11 submitting, it was being run by Bruce Berman as CEO.
“Bruce Berman’s grandfather Sam Berman opened his first store in 1912 and it became Harlem Furniture in 1950 after opening its location on Harlem Avenue in Chicago. The company began expanding, and by 2001, the chain had over 20 stores and changed its name to The RoomPlace,” TheStreet’s Kirk O’Neill reported.
Bringing that title again was a workaround if the brand new firm didn’t personal the RoomPlace model.
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Utilizing a brand new, however previous, title didn’t save the corporate’s bodily retail presence.
“The Chicago-based retailer, formerly known as The Roomplace, filed a WARN notice with the Illinois Dept. of Commerce & Economic Opportunity on Sept. 8. The notice indicates 35 positions will be impacted as the retailer undergoes its transition,” Furnishings Immediately reported.
Harlem Furnishings will nonetheless function underneath a pure digital mannequin.
RoomPlace’s path to Chapter 11 chapter
- February 2024, Chapter 11 Submitting: RoomPlace cites debt and operational challenges, closing eight shops, together with six in Indianapolis.
- August 2024, asset liquidation: No acceptable bids at public sale; the corporate holds its personal retailer closing gross sales.
- April 2025, Harlem Furnishings reopening: 4 shops reopen underneath the Harlem Furnishings title — a nod to the corporate’s historical past.
- September 2025, everlasting closure: All 4 bodily shops shut; the model transitions to an online-only mannequin, impacting 35 staff.
Sources: Furnishings Immediately, TheStreet
RoomPlace blamed rates of interest
Rising rates of interest and a slower housing and development market led to RoomPlace’s Chapter 11 chapter submitting, in line with then-company President Valerie Berman-Knight.
“Berman-Knight was specifically referring to rates that reached higher than 7% in late 2022, and later rose toward 8% in late 2023. As a result, she noted, ‘The home furnishings industry felt an immediate and severe impact. Home sales and construction activity decreased, which negatively impacts furniture sales and profitability,'” HomeNewsNow reported.
Extra U.S. furnishings chains that filed for chapter in 2024-2025:
2024
- Conn’s HomePlus: Chapter 11; 174 areas closed
- Badcock House Furnishings & Extra: Liquidated 370+ shops
- Wallaroo’s Furnishings & Mattresses: Chapter 11; Western U.S. areas
2025
- At House: Chapter 11; 29 shops closed
- American Freight Furnishings: Chapter 11; 328 areas closed
- Worthy’s Run Furnishings: Chapter 11, nonetheless working.
Associated: 80-year-old furnishings big going out of enterprise, liquidation sale
