New owner of formerly bankrupt furniture chain relaunches brand

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According to The Street, High inflation, rising interest rates, supply chain disruptions, and shifting consumer preferences have financially strained several furniture retailers, leading to bankruptcies and store closures.

Z Gallerie Files for Chapter 11 Bankruptcy

On October 16, 2023, the parent company of upscale furniture and home décor retailer Z Gallerie, which operated 21 stores across nine states, filed for Chapter 11 bankruptcy protection. The company cited significant increases in supply chain and import costs during 2021 and 2022, which severely impacted its profitability and cash flow. This move followed ongoing financial struggles as the brand navigated a challenging retail environment.

The RoomPlace Declares Bankruptcy, Closes Multiple Stores

Furniture and mattress retailer The RoomPlace filed for Chapter 11 bankruptcy on February 2, 2024, in the U.S. Bankruptcy Court for the Northern District of Illinois. The Lombard, Illinois-based chain, which operated 26 stores, cited declining retail sales and other industry challenges. As part of its restructuring plan, The RoomPlace closed six stores in the Indianapolis area, one in Kenosha, Wisconsin, and one in Peoria, Illinois. The company announced plans to focus on its remaining 18 stores in the Chicagoland area in hopes of strengthening its core business.

Mitchell Gold + Bob Williams Shuts Down and Files for Chapter 7

Upscale furniture retailer Mitchell Gold + Bob Williams abruptly ceased operations on August 26, 2023, after failing to secure critical financing to continue business. The company closed all 27 of its stores in 14 states, including around 40 virtual stores and six brick-and-mortar outlet locations. The company initially filed for Chapter 11 bankruptcy on September 6, but later converted the case to Chapter 7 liquidation on October 6.

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Mitchell Gold + Bob Williams had been owned by Stephens Group since 2014 and had recently invested $20 million in a restructuring effort. However, after the company’s lender withdrew financial support, the firm was forced to close, resulting in over 500 layoffs.

Mitchell Gold + Bob Williams Brand Relaunches Under Surya

In a turnaround for the brand, home furnishings and design company Surya completed the acquisition of Mitchell Gold + Bob Williams’ intellectual property, inventory, and manufacturing equipment on November 14, 2023, through a bankruptcy sale. Surya plans to relaunch the brand as a trade-only partner, targeting leading interior designers and design-driven retailers.

The company has hired co-founder Mitchell Gold as an adviser on its fall product lineup and, on August 5, 2024, released 50 iconic Mitchell Gold + Bob Williams upholstered furniture pieces in over 200 configurations available for purchase by designers. Surya will officially reintroduce the brand at the High Point Market in North Carolina from October 24 to 30, 2024.

Customers Caught in Bankruptcy Shipping Delays

As part of the bankruptcy proceedings, Mitchell Gold + Bob Williams faced a delivery impasse when Ryder, a logistics company, held about 2,000 furniture orders due to non-payment for shipping. Customers, who had already paid for delivery, were left waiting for their items. However, a federal judge approved a deal allowing customers to pay Ryder directly to receive their orders, with the company waiving storage fees.

This arrangement provided relief for customers caught in the bankruptcy process, while Mitchell Gold + Bob Williams’ brand began its path to revival under new ownership.

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