Welcome to Furniture Industry News, your source for staying informed about what's happening in our industry.

I'm here today, Monday, June 16, 2025, to bring you the latest developments that matter to furniture professionals.

Let's start with some major breaking news from today.

At Home Group has officially filed for Chapter 11 bankruptcy protection in Delaware.

This isn't entirely surprising given the warning signs we've been tracking over recent months.

The Texas based home decor retailer missed an interest payment back in May and entered into a forbearance agreement with lenders.

What's striking is the scale here.

They're listing assets and liabilities somewhere between 1 and $10 billion each.

With creditors numbering in the tens of thousands, the company has been struggling with what they're calling a perfect storm of challenges.

Rising interest rates, ongoing inflation and mounting pressure from tariff costs have all hit their revenue and cost structure hard.

As part of the bankruptcy process, At Home has already made the difficult decision to close 26 of their 260 stores, targeting what management calls underperforming locations.

There's also the possibility of more closures down the road.

But here's what's particularly interesting about At Home's situation They're not just looking at restructuring their debt.

There's a real possibility of an ownership change.

As part of their recovery strategy, the company has reached agreements with lenders holding more than 95% of their nearly $2 billion in debt.

If everything goes according to plan, ownership will transition from current private equity owner Hellman and Friedman to the lenders who are supporting the restructuring.

They're also getting a $200 million capital infusion to help them through this process.

At Homes, CEO Brad Weston is putting a positive spin on things, emphasizing that they've been working to strengthen their foundation by sharpening focus and improving operations.

He's particularly calling out the challenging trade environment and tariff impact as as major factors they're dealing with.

The company is assuring vendors they'll be paid in full for goods and services provided after the filing date, and they're continuing to serve customers both in stores and online.

Speaking of tariffs, that's becoming a major theme across our industry right now.

Ashley Furniture's CEO Todd Wanek recently shared some thoughtful insights about navigating these uncertain times.

Wannack, who just received the HFA Trailblazer Award, is is taking a long term view of the challenges facing furniture retailers today.

His advice is pretty don't panic about tariff driven demand spikes.

While we might see some beat the tariff promotions, creating short term sales bumps, Wanek warns against making reactionary inventory decisions.

He's pointing to the post pandemic supply chain chaos as a cautionary tale about what happens when companies over order in response to perceived urgency.

Wanik is also highlighting two major long term shifts that he thinks will have much bigger impact than short term economic artificial intelligence and robotics.

He's calling these fundamental disruptions that companies need to embrace strategically to stay competitive.

For smaller independent retailers, his message is actually encouraging.

He believes they have the biggest advantage because they don't need influencers.

Their customers and community members are their influencers.

The key, according to Wanik, is getting back to basics, controlling expenses, improving the in store experience and building strong community connections.

Despite forecasting slower growth ahead, he remains optimistic that the industry will adjust through better pricing and improved efficiency.

This connects to some interesting perspective from industry observer Bill McLaughlin about finding opportunity and disruption.

McLaughlin is making the case that while many companies are taking a wait and see approach during this period of tariff uncertainty and there are actually significant opportunities for those willing to act.

He's comparing the current situation to those quiet moments in retail when you might think there's nothing to do, but there's actually plenty of productive work available.

Now could be the perfect time for technology upgrades, staff training and process improvements that might be too disruptive during busier periods.

Think about it.

If you've been considering changing ERP systems or reorganizing warehouse operations when better to do it than when business volume is lower, McLachlan suggests this is also an ideal time to experiment with new product segments, store layouts and pricing strategies.

Since the risk of disruption is lower than during high traffic periods, the goal is laying groundwork for accelerated recovery when conditions improve.

Companies that use this interim period wisely could position themselves as winners when the tariff situation resolves and business picks up again.

Now let's talk about another segment of our industry that's facing serious challenges.

The mattress business.

The latest data from the International Sleep Products association shows that mattress and foundation shipments hit just 25.9 million units in 2024.

That's not just a 6.4% year over year decline.

It's actually lower than shipment levels during the Great Recession when 32.7 million units moved in 2009.

To put this in perspective, the industry shipped more than 37 million units back in 2019.

We're looking at nearly a 30% collapse over five years.

The reasons are complex macroeconomic pressure, post pandemic market overstimulation, sluggish housing market inflation, fatigue and lingering inventory hangover all playing a role but the bottom line is clear.

Retailers are fighting harder for fewer customers, and manufacturers are dealing with volume levels not seen in nearly two decades.

Industry analyst Sheila Longomara calls this more than just a correction, it's a reckoning.

The pandemic era surge in 2020 and 2021 pulled demand forward, and now we're living with the aftermath.

For many consumers, mattresses have returned to being discretionary purchases that can be delayed.

But there are strategies for surviving and even thriving in this environment.

The focus needs to shift to rethinking value beyond just price.

Consumers want proof that products are worth the investment, proof they'll last and fit their lifestyle.

This means retailers and manufacturers need to do more than promote markdowns.

They need to clearly communicate why their product, why now, and why it's worth it.

Training becomes absolutely critical when fewer customers are walking through doors.

Every interaction matters more.

So retail sales associates need education not just on product features, but on sleep science, handling objections and solution selling.

The in store experience remains a powerful conversion tool when it's done right.

The mattress industry is also seeing the middle price segment, roughly 799 to $1,499, getting particularly squeezed.

Companies need to decide whether they're doubling down on value at that price point or repositioning to target either the premium or promotional ends more effectively.

Innovation still matters, but it needs to be meaningful innovation, not marketing gimmicks.

Products that offer real differentiation in areas like cooling style, sustainability or durability backed up with solid storytelling, will stand out in this compressed market.

Looking across all these stories, there are some common themes emerging.

Whether we're talking about At Home's restructuring, Ashley's strategic focus, the opportunities in tariff disruption, or the mattress industry's challenges, successful companies are the ones taking deliberate action rather than just waiting for conditions to improve.

The message seems this is a time for strengthening foundations, improving operations, and positioning for the recovery that will eventually come.

Companies that use this period wisely to refine their approach and reconnect with customers will emerge stronger and more resilient.

That's our Industry Update for today.

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Until next time, stay informed and keep moving forward.