North Carolina manufacturer Progressive Furniture has announced it will cease operations by the end of 2025. However, the company has confirmed it does not plan to file for bankruptcy.
Rising labor and raw materials cost, interest rates and real estate slowdown, as well as the potential effects of recently introduced new tariffs were all cited as reasons for the shut down.
The in High Point based company which is owned by Sauder Woodworking, also cited the loss of its main supplier in Mexico, which accounted for 60% of its product line, as a key factor behind its closure.
Despite shutting down, officials emphasized that Progressive would continue fulfilling orders, honoring warranties, and supporting its 30 employees at its Claremont Distribution Center through the transition.
The closure of Progressive Furniture highlights the growing pressure on manufacturers, as they grapple with inflation, shifting consumer demands, and an evolving trade landscape. Retailers like Walmart, Target, Home Depot, and Wayfair—who sell Progressive’s products—will now need to find new suppliers.
Industry experts warn that more closures or restructurings may be on the horizon as companies struggle with rising costs and heightened competition. It remains to be seen whether the closure of Progressive Furniture is a sign of broader changes ahead for the industry.