Introduction
If you’ve recently walked by your local shopping plaza and noticed empty storefronts where once-thriving furniture stores used to be, you’re not alone. In 2025, the furniture retail industry is undergoing significant changes, with several big-name stores shutting their doors for good. With the rise of e-commerce, inflation, and changing consumer habits, it’s no surprise many are asking: what furniture store is going out of business this year?
This article explores the major furniture store closures happening in 2025, the reasons behind them, and what this means for you as a consumer.
Why Are Furniture Stores Closing in 2025?
Shifting Consumer Habits
The biggest shift in the retail landscape is how people shop. Consumers are increasingly choosing online furniture shopping over traditional showrooms. The ability to compare prices, read reviews, and have items delivered straight to the door has made e-commerce the go-to method for furnishing homes.
Economic Pressures
- High inflation
- Rising interest rates
- Increased operational costs (rent, utilities, wages)
These factors have forced many retailers, especially those with large physical footprints, to rethink their strategy—or shut down entirely.
Post-Pandemic Effects
Though the height of the COVID-19 pandemic has passed, the long-term effects continue to be felt. Supply chain issues, low in-store foot traffic, and a general shift toward minimalist and cost-conscious lifestyles have impacted the industry hard.
Major Furniture Stores Going Out of Business in 2025
American Freight
Status: Closing all stores
Why? Bankruptcy filing due to declining consumer spending and high competition in the budget furniture space.
American Freight, once known for its low-cost home furnishings and mattress deals, couldn’t survive the economic squeeze. The brand filed for bankruptcy and is shutting down all its remaining retail locations in 2025.
Big Lots
Status: Closing ~200 locations
Why? Weak sales, net losses, and high operational costs.
Big Lots is scaling down its operations dramatically. Despite being a hybrid discount store offering everything from groceries to furniture, the brand has faced consistent losses over the past few years. In 2025, the company will shutter roughly 200 stores across the U.S.
Macy’s Furniture Departments
Status: 150 stores closing (includes furniture locations)
Why? Streamlining operations, focusing on e-commerce.
Macy’s has announced a three-year plan to close 150 underperforming stores, many of which include furniture departments. The closures are part of a broader strategy to shift toward digital sales and fewer physical locations.
Home Store + More (UK)
Status: Closed all UK branches
Why? Business collapse due to rising costs and competition.
This UK-based homeware and furniture retailer closed all of its stores in early 2025. It’s another example of how even established brands can struggle when operating costs skyrocket and online retailers dominate.
What These Closures Mean for You
1. Opportunities for Discounts
With many stores liquidating their inventory, it’s a good time to find deep discounts on furniture and home décor. Be sure to look for store closing sales or bankruptcy deals near you.
2. Greater Dependence on Online Shopping
These closures also push consumers further toward online platforms. Brands like Wayfair, Amazon, IKEA, and Article are seeing a surge in demand, offering free shipping, easy returns, and virtual interior design tools.
3. Smaller Local Retailers May Benefit
As large chains shut down, local furniture stores may see a resurgence. Shoppers looking for unique pieces or personalized service might find better options in independent showrooms.
Tips for Buying Furniture in 2025
- Research Brands: With changing business models, make sure the store you buy from is financially stable.
- Check Return Policies: Especially during liquidation sales—returns are often not accepted.
- Use AR Tools: Many websites offer “view in your room” features to visualize furniture at home.
- Follow News: Stay updated on which stores are going out of business for real-time shopping opportunities.
Conclusion
In 2025, the question of “what furniture store is going out of business” is more relevant than ever. With big names like American Freight, Big Lots, and Macy’s downsizing or disappearing altogether, the furniture retail landscape is transforming rapidly.
Whether you’re bargain hunting or looking to understand market trends, it’s essential to stay informed and adapt your shopping habits to the evolving retail world.