[2025 Global Home Furnishing Industry Special Report] 2025 has a lot of closures and bankruptcies in the global home furnishing industry. Reason such as sluggish real estate markets, inflation, rising interest rates, and fierce market competition, a large number of home furnishing brands, from century-old giants to regional retail chains and small shop. Fall into distress and even exited the market. Industry data showed that the North American and European markets of the global home furnishing industry, have become the hardest-hit areas.
Typical Cases: Collapse of Industry Giants
- American Signature Inc. (ASI) – A Century-Old Retail Giant Falls: American Signature Inc. (ASI), a U.S.-based home furnishings retail giant from 80-year history and annual sales of 1.1 billion US dollars before
- Brandt Group – A Century-Old French Appliance Maker Enters Liquidation: a century-old French home appliance and kitchenware manufacturer, known as "Pearl of French Industry". Entered judge by French court on November of 2025.
- Regional Chain Closures in Europe: For example :HomeSense UK, which is famous on home decors close 45 stores, "Möbel Kraft" a German furniture retail chain, went bankruptcy, affecting 12 stores and 280 employees.
Root Causes of the Wave of Closures
Industry analysts point out that the reason of closure of home furnishing brands in 2025 as bellowing:
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Sluggish Real Estate Market: The global real estate market has been down in 2025, with declining housing transactions and new construction starts in major markets such as the United States and Europe, directly reducing the demand for home furnishing products.
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Inflation and High Interest Rates: Persistent global inflation has increased consumers' living costs, make them to save on non-essential spending such as home decorations and furniture purchases. At the same time, rising interest rates have raised living costs, causing high cash flow pressure and debt.
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Intense Market Competition: The rise of online e-commerce platforms has disrupted traditional retail models. Offline home furnishing stores, which have high rental and labor costs, are struggling to compete.
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Slow Digital Transformation: Many traditional home furnishing brands have not update their business models and upgrade their digital capabilities, changing consumer shopping habits and market demand.
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