Declining furniture sales, as a result of a multi-year housing slump, and rising product and labor costs driven by inflation and higher tariffs, have been blamed for a reduction in furniture company sales and profits over the last year.
The trend carried over from 2025 into this year as furniture and home furnishings sales have fallen for three straight months in 2026, according to the CNBC/National Retail Federation Retail Monitor, declining 0.11% in March, 0.27% in February, and 0.31% in January, month-over-month, seasonally adjusted.
Dismal sales results have led struggling furniture companies in some cases to close stores and businesses and file for bankruptcy.
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eSolutions Furniture ceases operations
Canadian home and office furnishings retailer eSolutions Furniture Group, whose iconic brand Bestar Furniture opened 78 years ago, has shut down its manufacturing operations and is expected to appoint a receiver and file for bankruptcy on May 4, the company said in an April 30 statement.
The Sherbrooke, Québec-based manufacturer, an e-commerce solution for residential and commercial furniture, also operates Bush Furniture, which was established in 1959, and Bush Business Furniture.
Bush Furniture announced the closure on the company’s website and said its U.S.-based customer service representatives would be available to advise consumers with questions.
“Important Update About Bush Furniture,” the message was titled.
“We’re sorry for the inconvenience, but Bush Furniture has ceased operations. As a result, available inventory is limited and may change rapidly as remaining stock declines.
“Our website will remain open, and we are actively adding similar office furniture solutions from our trusted vendors. If you were looking for a Bush Furniture desk, workstation, storage cabinet, bookcase, our U.S.-based furniture experts are here to help.
“Our team of live USA-based agents averages over 20 years of experience helping customers find the right office furniture. We would be happy to recommend comparable products, answer questions, and help you find the best available solution during this unexpected situation,” the message concluded.
Company will appoint a receiver
The lender and administrative agent for eSolutions Furniture, Fédération des caisses Desjardins du Québec, is expected to file a motion on May 4 in the Superior Court of Québec under Canada’s Bankruptcy and Insolvency Act seeking to appoint PricewaterhouseCoopers as receiver to manage the company’s assets, the statement said.
The debtor could also file for Chapter 15 bankruptcy protection in a U.S. Bankruptcy Court, seeking recognition of its Canadian Bankruptcy and Insolvency Act filing as a foreign main proceeding to protect its assets in the U.S., which is common in cross-border insolvencies and bankruptcies.
Employees terminated in wind-down
The receiver would oversee the orderly wind-down and sale of eSolutions through a court-supervised process, according to the company statement. The wind-down will result in job terminations, which will occur in stages, with some positions ending immediately and others remaining temporarily to support the wind-down.
Canadian and U.S. employees will receive information about their applicable termination processes and protections.
“In these circumstances, a court-supervised receivership process is necessary to preserve value and ensure an orderly and transparent process,” the company said in the statement.
“The company is cooperating with the lenders, the proposed receiver, and other stakeholders to support an orderly process,” according to the company.
Financial condition worsens since Covid
The financial condition of eSolutions has worsened significantly since 2021, the company said, which was the year the retailer was created from the merger of Bestar, Bush Furniture, and Bush Business Furniture.
The furniture company faced increased pressure beginning in 2024 with the imposition of new tariffs by the U.S. government, a reduction in consumer demand after the Covid-19 pandemic, rising competition from offshore competitors, and continued cash constraints, according to the statement.
The debtor failed to make interest payments to its lenders for over a year, which will likely result in a significant loss for the lenders during the bankruptcy process, the company said.
Asset sale is only viable option
Winding down the business and selling its assets is the only viable option to maximize the company’s assets, eSolutions said. Customers with outstanding orders or claims are advised to contact the appointed receiver.
The debtor advises suppliers not to ship additional goods or provide services unless authorized by the receiver. All supplier claims will be administered through the Superior Court of Québec’s BIA process, as part of the wind-down.
The asset sale and wind-down process will seek to maximize creditor recoveries, but the debtor asserts that the process is unlikely to provide a distribution to unsecured creditors.
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