Furniture Factory Outlet Files for Chapter 11

Furniture Factory Outlet (FFO Home) joins the growing ranks of retailers seeking bankruptcy protection due to losses created by the pandemic. The home goods retailer, which is owned by private equity firm Sun Capital Partners, filed for Chapter 11 in Delaware last week, and is hoping for a sale. Currently, furniture retailer American Freight has offered a $7 million stalking horse bid for the company.

At the start of 2020, Furniture Factory Outlet operated 68 stores in the Midwest and South Central states, before being forced to close 37 locations due to financial stress from COVID-19. The retailer now has 31 stores left in Arkansas, Missouri, Oklahoma, Kentucky and Indiana, as well as a bedding manufacturing facility and one distribution facility.

In its bankruptcy filing, the retailer said raw materials have been harder to acquire, which has impacted manufacturers’ ability to produce goods. “The pandemic has also impacted manufacturing safety, which has lessened the amount of finished goods available,” the retailer stated in its filing. “Furthermore, transportation of raw materials and finished goods has been additionally pressured as a result of restrictions on the labor force. As a result, the debtors’ revenue continues to be choked by the lessened inventory supply chain.”


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