Here today, gone tomorrow

It was a bad summer for large furniture manufacturers.

What is happening to the furniture industry? I’ll be honest, as I write this I don’t have an answer, so don’t expect one. But as we head into fall, many are still reeling from the closure of not one but three major furniture manufacturers in August.

In late August, North Carolina furniture maker Mitchell Gold + Bob Williams closed their doors without warning, surprising employees on Saturday by telling them not to come in the following week. More than 530 employees were immediately out of work.

A few weeks earlier, another N.C. maker, Klaussner Home Furnishings abruptly shut down at the beginning of the work week. More than 880 employees in seven locations got the axe. In both cases, the companies cited the pull-out of financial backing as the cause – with lending suddenly cut off, both companies could no longer fund their operations.

Meanwhile, in the Midwest, a 40-year North Dakota manufacturer, Solid Comfort Inc., also shut its doors. Although a smaller company (only 125 employees were laid off) the loss was still keenly felt in the local economy, as well as sending worrying vibes through the industry.

Why is this all happening? Again, I don’t have an answer. Some analysts cite the general world economy, especially as it involves lingering aftereffects of the Covid pandemic. While the world is recovering from the pandemic, clearly some sectors of business and industry took a bigger hit than they can recover from.

In any event, this all bears close watching. For smaller shops and makers, there is probably not a lot to be concerned about yet. In fact, the shuttering of large companies may create opportunities for smaller ones. I suppose that’s a silver lining, but I’m more than a little concerned about the dark cloud behind that lining.