Furniture retail chains have faced financial distress due to slow real estate market, inflation, rising costs, and tariffs. Small chains like Landmark Furniture, Walker Edison, American Mattress, and 5th Avenue filed for bankruptcy. Largest filing was by American Signature Inc., with 120 stores and 3,200 employees, seeking reorganization.

Franchisee of Buddy’s Home Furnishings filed for Chapter 11 bankruptcy to halt foreclosure sales and reorganize. Buddy Mac Holdings and affiliates filed in Texas to stop foreclosure on properties in Texas, Missouri, and Illinois. Assets and liabilities range from $10-50 million. Largest creditors include Buddy’s Newco, O’Rourke Sales, and C&L Supply.

Buddy Mac owed $12.6 million on a secured loan, leading to foreclosure proceedings on properties in Illinois and planned for Texas and Missouri. Once largest franchisee, Buddy Mac had 84 stores across eight states but downsized to 47. The franchise began in 2014 and operates over 300 locations.

Despite strong financial performance, Buddy Mac’s parent company and franchisor filed for Chapter 11 bankruptcy in November. Legal issues arose with franchisor over past due amounts and breach of franchise agreements. Buddy Mac disputes claims and asserts $38 million in damages against franchisor.

The story was published by TheStreet on Dec 5, 2025, in the Retail section. Buddy Mac Holdings LLC filed for Chapter 11 bankruptcy to reorganize and halt foreclosure proceedings on its properties. Franchisee of Buddy’s Home Furnishings, Buddy Mac had a history of strong financial performance but faced legal challenges with its franchisor.

Read more at Yahoo Finance: 64-year-old furniture store franchisee files Chapter 11 bankruptcy