It’s not often that you hear about entire companies going under, seemingly out of the blue.
The typical process — if it can be called that — is that you’ll begin to hear rumblings about some giant, beleaguered company that’s been having financial issues for years.
Related: Bankrupt retail chain suddenly closing all stores
Perhaps the company may be considering closing stores, eliminating staff, or filing for bankruptcy protection.
Perhaps it’s all three.
Such has been the case with troubled retailers like Forever 21 and Joann, for example.
It wasn’t any secret that either of these two store chains had their issues.
In the case of Forever 21, the decline of the indoor shopping mall, paired with increased competition from online retailers, accounted for much of its struggles.
For Joann, cheaper e-commerce selections and the high cost of running brick-and-mortar stores for a nice demographic was mostly to blame.
It wasn’t hard to parse through the financials and read the writing on the wall. So it wasn’t exactly a surprise when either of these companies finally went under.
Image source: Suzanne Kreiter/The Boston Globe via Getty Images
Other companies are struggling, too
A few high-profile company failures almost always dominate the headlines. But others have also had a hard time.
Smaller mom-and-pop shops, regional retailers, and even banks and restaurants have had a hard go of it as consumer habits change.
More closings:
- Iconic retail chain closing nearly 500 stores
- Another discount retailer closing over 1,000 stores
- Another struggling mall retail chain closing more stores
The rise of online banking, for instance, has prompted the closure of many banks across the country.
A great consolidation of smaller retailers has enabled larger corporations like Target, Walmart, or Costco to swoop in and set up shop in their stead.
And now, as talk of high tariffs panics nearly every retailer that relies on imported goods, others are following suit
Big furniture company shutting down
Such is the case for Progressive Furniture, an affordable subsidiary of Sauder Woodworking, which is the nation’s seventh-largest furniture producer.
Progressive Furniture makes products for retail giants like Walmart, Home Depot, and Target.
But as Trump is proposing harsh tariffs on some countries on which Progressive Furniture relies heavily for production — like China and Mexico — the company has found it untenable to continue.
It will shut down completely by the end of 2025 and lay off all 30 of its workers.
Related: Iconic retail chain suddenly closing down store after job cuts
“This decision was not made lightly, and we understand the impact it will have on our employees, customers, and partners,” president Dan Kendrick said. “We are committed to supporting our employees through this transition and will aid where possible to help them find new opportunities.”
He said that recent economic conditions are the reason to blame for Progressive’s ongoing difficulties.
“Obviously, business conditions have been challenging for the past few years, but the closure of our primary supplier in Mexico has made a major impact,” Kendrick added. “This factory supplied 60% of our products.”
