Welcome to Furniture Industry news.

Today is March 5, 2026.

I'm glad you're here.

Each episode, we take a few minutes to walk through the biggest developments affecting furniture retailers, manufacturers and suppliers across the industry.

The goal is help you stay informed about the trends shaping the business without having to read through a stack of articles to do it.

Today's update touches on several important issues.

We'll talk about a court ruling that could eventually lead to tariff refunds for importers, a few retail lessons that furniture stores might borrow from Target rising big box rents that are complicating expansion plans a Chapter 11 filing from a regional furniture retailer the closing of a longtime independent store in Illinois, the shutdown of an outdoor furniture manufacturer and finally, a look at where furniture orders ended last year.

Let's start with tariffs, because this one could affect a lot of people in the industry.

A federal trade Court has ordered U.S. customs and Border Protection to begin issuing refunds tied to tariffs that were previously imposed under the International Emergency Economic Powers act, often referred to as ieepa.

Those tariffs were struck down earlier by the Supreme Court, and now the court is pushing the government to begin implementing the refund process.

The order directs Customs to finalize certain import entries without assessing those tariffs.

This happens through what's known as the liquidation process, which is basically the period where Customs reviews an import entry and determines the final amount of duty owed.

That process typically runs for a little under a year.

The ruling also applies to some entries that have already been finalized.

Specifically, entries that were finalized within the last 90 days must be reviewed again and adjusted so that the tariffs are removed.

When that happens, importers would receive refunds, and those refunds would include interest.

This case moved faster than several other refund disputes currently sitting in the trade court system.

Customs has warned that processing these refunds could be complicated.

Officials suggested that millions of import entries might need to be reviewed with which could require a significant amount of manual work.

But the judge overseeing the case pushed back on the idea that refunds are something unusual.

His position was that Customs regularly processes refunds when duties are overpaid, and this situation shouldn't be treated as something entirely new.

Legal experts expect the government to appeal the ruling, which means the situation could continue evolving for companies that rely heavily on imports, including many furniture retailers and suppliers.

The big takeaway is that the tariff story isn't over yet, but the door is now open for potential refunds on duties that were ruled invalid.

Now shifting from trade policy to retail strategy, there was an interesting piece this week looking at what furniture retailers might learn from Target.

Target recently announced plans to invest about $2 billion into store remodels, technology improvements and staffing.

The goal is to keep their stores feeling fresh and engaging for customers.

The argument made in the article is that furniture retailers can borrow some of that thinking without needing anything close to that level of investment.

One idea is treating the showroom more like a stage instead of a warehouse.

That means paying closer attention to lighting, improving product vignettes and arranging displays in ways that help customers picture how furniture will actually look in their homes.

Another recommendation is to reduce clutter.

Many furniture floors carry a lot of product, but that can sometimes make it harder for customers to focus on standout collections.

The suggestion is to curate fewer signature groupings that better represent the retailer's style and brand.

There's also a staffing angle.

Instead of simply having sales associates who walk customers through features and pricing, retailers might think about positioning associates as design advisors who help customers style a room or solve a layout problem.

Technology plays a role, too, but the advice is to keep it practical.

Tools like room planners, personalized product suggestions or loyalty programs can help maintain customer relationships without overcomplicating the experience.

The broader message is that experience, curation and service still matter a lot in furniture retail.

Now let's talk about real estate, because that's becoming another pressure point for furniture retailers.

You might assume that with thousands of retail store closures in the United States last year, there would be a lot of cheap retail space available.

But that's not exactly what's happening.

Instead, big box rents are rising.

Part of the reason is competition from off price retailers.

Chains like Ross Dress 4 Less and TJX are expanding aggressively and are actively looking for retail boxes in the same size range that many furniture retailers prefer.

That sweet spot tends to be somewhere around 25,000 to 35,000 square feet.

When multiple types of retailers are competing for the same space, landlords gain leverage.

As a result, some furniture retailers are slowing down expansion plans, others are accepting secondary locations instead of prime retail spots.

And some are looking towards smaller markets where real estate costs might be more manageable.

Next up is a bankruptcy filing involving a regional furniture retailer, American Home Furniture and Mattress, filed for Chapter 11 protection in early March.

The filing was made under the name AFC Acquisition Corporation in the US Bankruptcy Court for the District of New Mexico.

According to the filing, the company listed estimated assets between 1 million and $10 million and liabilities in that same general range.

The number of creditors listed was estimated to be between 1 and 49.

Leadership at the company said the goal is reorganization rather than liquidation.

The business plans to continue operating in Albuquerque while closing stores in Santa Fe and Farmington.

The company has also said it intends to continue fulfilling both existing customer orders and new purchases during the restructuring process.

In explaining the bankruptcy filing, the company pointed to a few different factors.

One of the more unusual ones involves prolonged freeway construction near its Comanche Road location.

That construction has reportedly affected traffic to the store for more than a year and is expected to continue for another two years.

Executives also cited broader industry challenges, including inflation and rising costs tied to tariffs.

Meanwhile, in Illinois, a long time independent retailer has announced it will close after more than six decades in business.

Kelsey Furniture in Tuscola, Illinois, was founded in 1959.

The company recently announced a going out of business sale, explaining that the building had been sold and must be cleared out.

The store said all inventory will be sold and that reasonable offers would be considered as part of the liquidation process.

Stories like this have become more common over the past several years as the retail landscape continues to shift and many long running independent stores face increasing competitive pressures.

Another notable development comes from the manufacturing side of the business.

Scancom International, a company that has produced outdoor furniture for more than 30 years, announced that it will cease operations.

The company said the decision followed several difficult years after the pandemic.

According to its statement, the outdoor furniture market shifted dramatically after the COVID period, creating conditions that became too challenging to overcome.

Scancom had attempted to stabilize the business during the past couple of years as turnover declined and costs increased.

The company now plans to move forward with a controlled shutdown, focusing on protecting customers with existing orders while winding down operations across its facilities, including operations in Vietnam.

And finally, let's wrap up with a quick look at industry demand.

According to the latest Furniture Insights report from Smith Leonard, new residential furniture orders in the United States finished last year essentially flat compared with the previous year.

Shipments were down slightly year over year, while December shipments were basically unchanged compared with both the previous month and the same month a year earlier.

December orders did decline from November, which is typical because of holiday season slowdowns, but they were slightly higher than the previous December.

Backlogs also eased a bit and receivables dropped compared with both the prior month and the previous year.

Inventory levels were relatively steady.

Month to month were somewhat higher than the year before.

The report also pointed out that shifting tariffs are continuing to complicate pricing decisions for manufacturers and importers, especially as companies prepare for upcoming market cycles.

On the consumer side, confidence ticked up slightly in February, although it remains well below levels seen late in 2024.

At the same time, surveys show that plans to purchase big ticket items, including furniture, have increased over the next six months.

So overall, the picture is mixed.

Orders are stable but not growing quickly, consumers are cautious but still interested in major purchases, and the industry continues adjusting to economic uncertainty.

And that's your Furniture Industry News update for today.

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