The furniture store closed due to its parent company's financial issues. The parent company, Oakwood Holdings, was facing significant debt and declining sales, which ultimately led to the closure of its subsidiary, Oakwood Furniture.
The company had been struggling to stay afloat for several months, with reports of missed payments and unpaid bills. This had a ripple effect on the local economy, with several employees losing their jobs.
The closure of Oakwood Furniture is a stark reminder of the challenges facing the retail industry. The company had been a staple in the community for over 20 years, providing furniture to families and businesses alike.
The exact date of the closure was March 15th, when the company's doors were locked and the inventory was liquidated.
You might like: Furniture Company
Reasons for Closure
The uncertainty of tariffs on imported goods led to the closure of My Home Contemporary Furniture in Merriam, Kansas.
99% of the products they carried were imported, making it difficult for the store to absorb the added costs.
The owner, Henrik Svendsen, already pays a 25% tariff on furniture from China and fears the new tariffs will be impossible to afford.
If the new tariffs are added, Svendsen will have to pay an additional $25,000 on a $100,000 order from Italy.
This means customers will have to pay more for furniture, as most of the furniture in the U.S. is imported.
A nice reclining sectional from Italy that they sell for $8,000 would have to be sold for $10,000 with the added tariffs.
The high prices will outprice the product, making it unaffordable for customers and unlikely to be produced in the U.S.
For another approach, see: What to Do with Furniture When Getting New Flooring?
Specific Store Closures
Sam Levitz closed one store in Oro Valley, north of Tucson, and plans to close two more stores in Tucson in late September.
The two stores set to close are the Sam's Furniture Outlet on 2020 W. Prince Road and the Sam Levitz store on 3430 E. 36th St.
Only one store, located at 3750 W. Orange Grove Road, will remain open.
This store is also home to Lounge by Levitz, a high-end showroom that opened inside the Orange Grove store.
A fresh viewpoint: How to Close the Gap between Bed and Wall?
Featured Images: pexels.com
