Furnishings retail chains have confronted monetary misery this 12 months associated to a sluggish residential actual property market, rising labor and product prices pushed by inflation, rising tariff charges since April, and even lingering results from the Covid-19 pandemic.
Financial issues have led a number of small and mid-size furnishings chains to file for chapter safety this 12 months, together with Landmark Furnishings mother or father Brenmark Inc., Walker Edison Furnishings Firm, American Mattress, and fifth Avenue Furnishings.
American Signature filed for Chapter 11 safety
Probably the most important Chapter 11 submitting this 12 months was 77-year-old furnishings retailer American Signature Inc., which owns the American Signature Furnishings and Worth Metropolis Furnishings chains.
The operator of 120 shops throughout the U.S., with 3,200 staff, filed its petition on Nov 22, looking for to reorganize its enterprise and promote its property to stalking-horse bidder ASI Purchaser LLC, after closing a number of shops.
Furnishings chain bankruptcies in 2025
- American Signature, Inc., Nov. 22
- Landmark Furnishings mother or father Brenmark Inc., Nov. 9
- Walker Edison Furnishings Firm, Aug. 28
- American Mattress, July 6
- fifth Avenue Furnishings, June 6, 2025.
And now, the franchisee of the massive furnishings retail chain, Buddy’s House Furnishings, has filed for Chapter 11 chapter safety to implement an automated keep of authorized proceedings, halt foreclosures gross sales of its properties, and both reorganize its enterprise or search a going-concern sale of its property to proceed working, quite than liquidating.
Buddy’s House Furnishings franchisee information for chapter safety.
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Buddy’s House Furnishings franchisee information for chapter
Buddy Mac Holdings LLC and 48 associates filed their petition within the U.S. Chapter Court docket for the Northern District of Texas in Dallas on Dec. 4 to cease the foreclosures proceedings on three of its properties situated in Texas, Missouri, and Illinois.
The DeSoto, Texas-based debtor listed $10 million to $50 million in property and liabilities in its petition, in response to RK Consultants.
Buddy Mac’s largest unsecured collectors embrace Buddy’s Newco LLC, owed over $1 million; O’Rourke Gross sales Firm, owed over $1 million; C&L Provide, owed over $919,000; Leopard Mobility Inc., owed over $314,000; Progressive Furnishings Inc., owed over $211,000; Noctova Options RTO Sleep, owed over $134,000; and Womble Bond Dickenson LLP, owed over $80,000.
Buddy Mac owed $12.6 million on a secured mortgage originated in 2019, with an unique principal steadiness of $26 million with Intrust Financial institution NA, which matured on Aug. 31 and was bought to Phonix RBS LLC on Sept. 2, in response to a declaration from the corporate’s managing member William Ian MacDonald.
Lender seeks to foreclose on Buddy Mac properties
Phonix filed a lawsuit in an Illinois state court docket in October to foreclose on a Marion, In poor health., property securing the mortgage and subsequently scheduled foreclosures proceedings for Tyler, Texas, and Caruthersville, Mo., properties in December.
Buddy Mac was as soon as the biggest franchisee of the rent-to-own furnishings and equipment retailer, Buddy’s House Furnishings, with 84 retailer places in Arkansas, Florida, Illinois, Kansas, Missouri, New Mexico, Oklahoma, and Texas.
Buddy Mac operates 47 shops in 8 states
- Arkansas, 9 shops
- Florida, 1 retailer
- Illinois, 1 retailer
- Kansas, 1 retailer
- Missouri, 12 shops
- New Mexico, 4 shops
- Oklahoma, 8 shops
- Texas, 11 shops
The corporate started its franchisee settlement in 2014 with franchisor Buddy’s Franchising and Licensing LLC, however has since downsized its places since its peak to 47 shops in the identical eight states.
The Buddy’s House Furnishings rent-to-own chain, which was established in 1961, operates over 300 company and franchise places
Buddy Mac had sturdy monetary efficiency in recent times, producing revenues of over $73 million in 2022 and $74 million in 2023, however the chain’s mother or father firm, Franchise Group Inc., and the franchisor weren’t doing properly and filed for Chapter 11 chapter on Nov. 3, 2024.
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The debtor additionally had authorized points with the franchisor, which had filed a lawsuit in opposition to Buddy Mac on Nov. 6, 2025, looking for $643,000 in late quantities on the franchise settlement, in response to the declaration.
Buddy Mac disputes the claims within the lawsuit and has asserted $38 million in claims in opposition to the franchisor, together with $34 million in damages for alleged breaches of its unique territory rights and rights of first refusal below its franchise agreements.
Buddy’s House Furnishings’ prime unsecured collectors
- Buddy’s Newco LLC, owed over $1 million.
- O’Rourke Gross sales Firm, owed over $1 million.
- C&L Provide, owed over $919,000.
- Leopard Mobility Inc., owed over $314,000.
- Progressive Furnishings Inc., owed over $211,000.
- Noctova Options RTO Sleep, owed over $134,000.
- Womble Bond Dickenson LLP, owed over $80,000.
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