The new owner of the former bankrupt furniture chain is relaunching the brand

High inflation, rising interest rates, supply chain issues and changing consumer attitudes over the past year have taken a toll on furniture chains financially, forcing more retailers to file for bankruptcy and in some cases to close stores.

The parent company of luxury furniture and home decor retailer Z Gallerie, which operated 21 stores in nine states, filed for Chapter 11 bankruptcy protection on October 16, 2023, as rising supply chain and cost of imports in 2021 and 2022 have severely affected the brand’s profitability and cash position.

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Furniture and mattress retailer The RoomPlace on February 2, 2024 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Illinois to restructure its debt and close some of its stores its, blaming declining retail sales across the country and other challenges. in the furniture industry.

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The 26-location Lombard, Ill.-based furniture retailer closed six stores in the Indianapolis area, one in Kenosha, Wis., and one in Peoria, Ill., and planned to focus on consolidating its remaining 18 Chicagoland stores .

Unable to secure essential financing to continue business operations, luxury furniture chain Mitchell Gold + Bob Williams ceased operations on August 26, 2023 and closed 27 stores in 14 states. It later filed for Chapter 11 bankruptcy on September 6, but later converted its case to Chapter 7 liquidation on October 6.

The company also operated approximately 40 virtual stores and six brick-and-mortar locations.

The company’s interim CEO, who had been in the position for four months, said in an Aug. 26 WARN letter to the state that the company “recently and unexpectedly learned” that it doesn’t have enough cash to keep its doors open opened.

The company, which was acquired by Stephens Group in 2014, recently made a $20 million investment in the brand, according to a report from Retail Dive.

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“Unfortunately, shortly after this restructuring, the company’s lender withdrew its support, forcing Mitchell Gold + Bob Williams to cease operations,” the firm said in a written statement on its website.

More than 500 people working at the company’s campus were immediately let go at the time of the sudden shutdown.

Mitchell Gold + Bob Williams will relaunch at a furniture showroom in North Carolina.

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The Mitchell Gold + Bob Williams furniture brand is being relaunched

Home furnishings and design company Surya on November 14, 2023 completed the acquisition of Mitchell Gold + Bob Williams intellectual property, inventory and manufacturing equipment in a bankruptcy sale, with plans to restart production and assembly at 35. Statesville, Hiddenite and Taylorsville, NCfacilties companies.

More bankruptcy stories:

• Retail chain Big Lots is poised to file for Chapter 11 bankruptcy
• Manufacturers of popular retail products file for Chapter 11 bankruptcy
• The mattress company’s rival files for Chapter 11 bankruptcy

Surya said it will re-introduce the brand as an exclusive trade partner accessible to leading interior designers and design-minded retailers. The company even hired co-founder Mitchell Gold as an advisor for its fall product lineup.

Surya released 50 iconic Mitchell Gold + Bob Williams upholstered furniture pieces on August 5, available in more than 200 configurations that designers can shop on the company’s website.

The company will relaunch the brand at High Point Market in its showroom at the International Home Furnishings Center in High Point, NC, Oct. 24-30 from 8 a.m. to 8 p.m., according to its website.

By approving the sale of Mitchell Gold + Bob Williams’ name and intellectual property in 2023, a federal judge signed off on an agreement that allowed some of the company’s customers to receive orders that had been frozen during the bankruptcy process.

Ryder held approximately 2,000 deliveries that Mitchell Gold + Bob Williams had not paid to be delivered. The delivery company charged the furniture manufacturer and retailer daily fees for storing undelivered orders.

This impasse puts customers in an impossible position. They had paid for the delivery, but their money had not been sent to Ryder. Under a court-approved settlement, those customers had the option to pay Ryder to ship their items, and the shipping company would waive storage fees.

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