The furniture retail sector has been hit hard by economic distress, with major companies closing stores and filing for bankruptcy protection. American Signature Inc., owner of American Home Furniture & Mattress, filed for Chapter 11 bankruptcy in 2025 and began liquidating its 89 stores in 2026. The furniture industry has attributed declining sales and profits to rising product and labor costs driven by inflation and higher tariffs. American Mattress has lost its bid to remain in business, as its Chapter 11 case has been converted to Chapter 7 liquidation. The company had not announced a going-out-of-business-liquidation sale and had not disclosed the number of employees affected by the store closings.