Furniture's Growth Streak Weakens as Bankruptcy Drama Unfolds

Originally published December 17, 2025. This version was rebuilt from government data, company filings and the court docket for the FIN archive, and the facts are as of that date.

The government shutdown pushed October's retail numbers into mid-December, and when they came out they told a familiar story. Furniture stores were still ahead of the year before, but only just, and several well-known names were busy shrinking.

The short version

• Furniture store sales in October were barely above October 2024.
• Natuzzi's sales were flat and the company was working on a restructuring plan.
• The company behind Kirkland's saw store sales improve while online sales collapsed, ahead of its sale to Bed Bath & Beyond.
• Manufacturers told ISM they expected a better 2026.

October sales, delayed and thin

The Census Bureau's advance report, released December 16 because of the shutdown, put furniture and home furnishings store sales at about $11.3 billion for October, seasonally adjusted. That was up 0.5% from a year earlier and up 2.3% from September.

The monthly bounce looks better in context. September had been revised to a decline from the year before, so October was a recovery more than a run. Through the first ten months the category was still up 3.8% on an unadjusted basis, but the pace had cooled from earlier in the year.

Natuzzi holds sales flat and plans cuts

Natuzzi reported third-quarter sales of €74.4 million, down 0.8%, with a better gross margin and a smaller loss. The company said store traffic and written orders were still below expectations, and that it was preparing a restructuring plan and still searching for a CEO to lead it. The same release mentioned the sale of its building in High Point.

Kirkland's parent shows the online problem

The Brand House Collective, the former Kirkland's, reported third-quarter sales of $103.5 million against $114.4 million a year earlier. Comparable store sales rose 1.7%, but e-commerce fell 34.6%. The company was converting some Kirkland's stores to Bed Bath & Beyond Home stores ahead of its planned combination with Bed Bath & Beyond.

That split is worth noticing. Customers still walked into the stores. The company also spent less on marketing that quarter, and online sales tend to feel that kind of cut first.

Manufacturers expect a better year

The Institute for Supply Management's December forecast had manufacturers expecting revenue to rise 4.4% in 2026, with capacity use at 82.4%. The same survey expected raw material prices to keep climbing. For furniture makers that combination means more orders but little room to lower prices.

American Signature's case moves toward a sale

The Chapter 11 case of American Signature, the parent of Value City Furniture, was in its sale phase in December. The court docket lists SB360 Capital Partners and a buyer entity, ASI Purchaser LLC, among the interested parties, with the U.S. Trustee also appearing in the case.

Update, October 2026. The case was still open, with lease rejections and fee filings continuing on the docket.

Where this left the industry in mid-December

Furniture demand was still positive, but thin enough that any company with a weak channel or too much fixed cost felt it right away. The year ended with growth on paper and restructuring in practice.

Related on FIN

• Furniture Store Sales Fell 2.7%. Every Other Category Grew.
• Furniture Shoppers Are Holding Back

Sources

• U.S. Census Bureau, Advance Monthly Retail Trade Report for October 2025, released Dec. 16, 2025
• Natuzzi S.p.A., Third quarter 2025 results, Form 6-K
• The Brand House Collective, Third quarter fiscal 2025 results, SEC filing Dec. 16, 2025
• Institute for Supply Management, December 2025 Semiannual Economic Forecast release
• U.S. Bankruptcy Court for the District of Delaware, American Signature, Inc. Chapter 11 docket