American Home Furniture Files for Chapter 11 Bankruptcy

Retailer's filing highlights challenges of running a brick-and-mortar furniture business

Published on Mar. 6, 2026

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American Home Furniture, a regional furniture retailer with four stores in New Mexico, has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of New Mexico. The company cited between $1 million and $10 million in assets and liabilities, with dozens of creditors owed over $2.17 million, primarily to 18 major furniture brands.

Why it matters

The American Home Furniture bankruptcy highlights the ongoing struggles that brick-and-mortar retailers face in competing against e-commerce players. Running a physical store operation comes with significant costs for rent, inventory, staffing, and other overhead that online-only businesses can avoid, putting traditional retailers at a disadvantage.

The details

American Home Furniture operated four stores in New Mexico, including two in Albuquerque, one in Santa Fe, and one in Farmington. The company cited the high costs of running a physical retail operation, including salaries, benefits, inventory, real estate, marketing, and other expenses, as the primary reasons for its bankruptcy filing. The list of the 20 largest unsecured creditors is dominated by major furniture brands owed a combined $1.9 million, representing 88% of the total $2.17 million in unsecured claims.

  • American Home Furniture filed for Chapter 11 bankruptcy protection this week in U.S. Bankruptcy Court for the District of New Mexico.

The players

American Home Furniture

A regional furniture retailer with four stores in New Mexico that filed for Chapter 11 bankruptcy.

Bernhardt Industries

A furniture brand owed $328,319.58 by American Home Furniture, the largest unsecured creditor.

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The takeaway

The American Home Furniture bankruptcy highlights the ongoing challenges that brick-and-mortar retailers face in competing against the lower overhead costs of e-commerce players. As more furniture sales shift online, traditional retailers will need to find ways to streamline operations and reduce expenses to remain viable.