FIN DeskOriginally published January 10, 2025. This version was rebuilt from the ILA and USMX joint statement, Gordon Brothers, Macy's and Arhaus releases, and EPA's formaldehyde risk evaluation for the FIN archive, and the facts are as of that date.
The second week of January 2025 cleared one big supply chain risk and added several new questions for retailers and manufacturers.
The short version
- The ILA and USMX reached a tentative agreement on a new six-year master contract.
- Gordon Brothers completed its purchase of Big Lots and a going-concern sale of stores.
- EPA found formaldehyde presents an unreasonable risk of injury to human health.
Port strike averted
On January 8 the International Longshoremen's Association and the U.S. Maritime Alliance said they had reached a tentative agreement on all items for a new six-year Master Contract. Both sides agreed to keep working under the current contract until ratification.
A strike at East and Gulf Coast ports would have disrupted furniture imports moving through those ports. The deal removed that risk ahead of the spring selling season.
Retail shakeups
Gordon Brothers said it had completed the purchase of Big Lots and facilitated a going-concern sale that kept hundreds of stores open, with assets going to buyers including Variety Wholesalers. Big Lots had been a major seller of value furniture.
Macy's confirmed the closure of 66 non-go-forward stores as part of its Bold New Chapter strategy. Department store closures shift some home furnishings demand to specialty and online retailers.
At the higher end, Arhaus raised its full-year 2024 revenue outlook to $1.27 billion to $1.28 billion, about $35 million above prior expectations, though comparable growth was still expected to decline 9% to 8%.
Formaldehyde under review
EPA released its final TSCA risk evaluation and found that formaldehyde presents an unreasonable risk of injury to human health for workers and consumers under its conditions of use. EPA lists composite wood products, foam bedding and seating, and furniture among products that contain it.
The finding starts a risk management process that could lead to new limits. Furniture makers already meet composite wood emission rules, but suppliers of resins, glues and foam would be watching for changes.
What's next for manufacturers
Ports were open, a major value retailer had a new owner, and a chemical review was underway. Manufacturers entered 2025 with fewer logistics worries and more questions about retail partners and materials.
Related on FIN
Sources
- International Longshoremen's Association, ILA and USMX tentative agreement (Jan. 8, 2025)
- Gordon Brothers, Completes Big Lots purchase (Jan. 9, 2025)
- Macy's, Inc., Confirms planned store closures (Jan. 9, 2025)
- Arhaus, Raises fourth quarter and full year 2024 revenue outlook
- U.S. Environmental Protection Agency, Final TSCA risk evaluation for formaldehyde
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