Industry Overview - The furniture retail sector is experiencing significant economic distress, leading to store closures, manufacturing facility shutdowns, and Chapter 11 bankruptcy filings among major home furnishing companies [1] - Declining sales in the furniture industry are attributed to a multi-year housing slump and rising product and labor costs due to inflation and higher tariffs [1] Company-Specific Developments - American Home Furniture & Mattress, based in New Mexico, has sought restructuring professionals to address its financial issues, which have been exacerbated by stagnation in home sales [2] - The company filed for Chapter 11 bankruptcy on March 4, with plans to reorganize, close certain stores, and continue operations, assuring customers that existing orders and gift cards remain valid [4][6] - The company is consolidating operations by closing its Santa Fe and Farmington locations while keeping its two Albuquerque stores open to serve customers [7] Sales Performance - The furniture industry reported a 0.82% decline in sales for 2025 compared to 2024, reflecting the impact of the housing slump [8] - For January 2026, furniture and home furnishings sales saw a month-over-month decline of 0.31%, with February results yet to be released [10]