The U.S. workplace market had a difficult yr in 2025, as total leasing declined 9.6% from 2024 ranges and 13.6% beneath the pre-Covid-19 common, in line with knowledge from international actual property adviser Avison Younger.
When companies should not leasing workplace area, there may be decrease demand for workplace furnishings. It is much like when individuals are not shopping for homes, demand shrinks for dwelling furnishings and furnishings.
Retailers who promote workplace furnishings and providers will undergo decrease gross sales on account of declining demand. When these companies shut their doorways, the companies that patronize them have fewer sources to supply much-needed furnishings.
Complete dwelling gross sales for 2025 had been about 1,000 decrease than in 2024, registering 4.061 million in comparison with 4.062 million, which was additionally the bottom annual dwelling sale whole since 1995, in line with Realtor.com.
“Furniture, of course, is many times a discretionary and deferrable expense, so weakness in the overall economy or declines in consumer confidence, like we’ve seen the last few months, can impact consumers’ willingness to spend,” Mark Laferriere, an assurance associate at Smith Leonard, informed Properties.com in November 2025.
Furnishings gross sales declined in 2025
The workplace furnishings sector has suffered from sluggish gross sales mirrored in total furnishings trade outcomes, which confirmed furnishings and residential furnishing gross sales barely elevated in December 2025 by 0.33% month over month, however declined by 0.82% for the yr, in comparison with 2024 unadjusted, in line with the CNBC/Nationwide Retail Federation Retail Monitor.
For January 2026, furnishings and residential furnishings gross sales declined 0.31% month over month seasonally, the report stated.
A difficult financial atmosphere led to probably the most vital furnishings chain chapter submitting final yr when American Signature Inc., which was the father or mother firm of the American Signature Furnishings and Worth Metropolis Furnishings chains, filed for Chapter 11 chapter safety, in search of to reorganize its enterprise and promote its belongings, after closing a number of of its shops.
The Columbus, Ohio-based furnishings retailer and eight associates filed their petition within the U.S. Chapter Courtroom for the District of Delaware on Nov. 22, itemizing $100 million to $500 million in belongings and $500 million to $1 billion in liabilities.
American Signature liquidates all shops
American Signature tried to reorganize and promote its belongings to stay a going concern, however its efforts failed, and it revealed in a Jan. 9, 2026, assertion that it will as an alternative liquidate and shut all 79 of its Worth Metropolis Furnishings shops in 13 states and 10 American Signature Furnishings shops in Delaware and Florida.
The debtor employed a three way partnership of liquidators, consisting of SB360 Capital Companions, Hilco International, and Gordon Brothers, to carry going-out-of-business gross sales with reductions of as much as 50% off of unique costs.
And now, the furnishings downturn has hit the workplace furnishings sector with a big chapter submitting.
VMI Furnishings Options recordsdata for chapter safety to reorganize its workplace furnishings enterprise.
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VMI Furnishings Options recordsdata chapter
Workplace furnishings providers, logistics, and set up firm VMI Furnishings Options LLC filed for Chapter 11 chapter to reorganize its enterprise and proceed working.
The Chesapeake, Va.-based firm filed its petition within the U.S. Chapter Courtroom for the Japanese District of Virginia in Norfolk on Feb. 19, itemizing $100,000 to $1 million in belongings and liabilities, in line with Public Entry to Courtroom Digital Data as reported by BankruptcyObserver.
VMI provides workplace furnishings providers
VMI Furnishings Options will order, obtain, decommission, reconfigure, ship, relocate, and set up workplace furnishings all through Washington, D.C., Maryland, Virginia, and San Antonio, Texas, in line with its web site
The 17-year-old firm, which operates out of places of work in Maryland, Virginia, and Texas, is licensed, insured, and bonded with a number of enterprise certifications, together with Small Ladies and Minority-owned certification by the Virginia Division of Small Enterprise & Provider Variety.
Extra bankruptcies:
- 73-year-old household diner franchisee recordsdata Chapter 11 chapter
- Extra troubled regional airways file for Chapter 11 chapter
- Main division retailer model liquidates in Chapter 11 chapter
VMI Furnishings Options holds 4 certifications from the U.S. Small Enterprise Administration and two from the U.S. Division of Protection.
“Supplying knowledgeable installers, superior customer service, and the latest knowledge about the office environment and commercial furniture has fueled the growth of VMI,” the corporate stated on its web site.
VMI Furnishings Options territory
- Virginia
- Maryland
- Texas
- Washington, D.C.
Associated: 53-year-old House Depot rival closing down, no chapter
