Office Market Overview - The U.S. office market experienced a 9.6% decline in overall leasing in 2025 compared to 2024, and it was 13.6% below the pre-Covid-19 average [1] - The decline in office leasing has led to reduced demand for office furniture, similar to the impact on home furniture when home sales decrease [1] Retail Impact - Retailers selling office furniture and services are expected to face lower sales due to the declining demand, which may lead to store closures and fewer sources for businesses needing furnishings [2] - Total home sales in 2025 were approximately 1,000 units lower than in 2024, totaling 4.061 million, marking the lowest annual home sale total since 1995 [2] Consumer Spending Trends - Furniture purchases are often discretionary and can be deferred, making them sensitive to economic conditions and consumer confidence, which have weakened recently [3] Furniture Sales Performance - The overall furniture industry saw a slight month-over-month increase of 0.33% in December 2025, but annual sales declined by 0.82% compared to 2024 [4] - In January 2026, furniture and home furnishings sales decreased by 0.31% month over month seasonally [4] Bankruptcy and Liquidation - A challenging economic environment led to the bankruptcy filing of American Signature Inc., which sought Chapter 11 protection to reorganize and sell assets after closing several stores [5] - The company, based in Columbus, Ohio, filed for bankruptcy on November 22, 2025, listing assets between $100 million and $500 million and liabilities between $500 million and $1 billion [6] - American Signature ultimately decided to liquidate, closing all 79 Value City Furniture stores across 13 states and 10 American Signature Furniture stores in Delaware and Florida [7]