By Marcus Kline, Business Reporter
Progressive Furniture, a budget-friendly furniture brand sold at major retailers like Target and Walmart, will shut down permanently by the end of 2025. The closure will result in approximately 30 job losses and is attributed to increasingly challenging business conditions. Dan Kendrick, the company’s president, explained that the loss of its primary supplier in Mexico—responsible for 60% of its products—had a significant impact on the company’s operations. Progressive Furniture, a subsidiary of Sauder Woodworking, also faced difficulties linked to broader economic pressures, including international tariffs, particularly those influenced by former President Donald Trump’s policies.
A Legacy of Affordable Home Furnishings
Founded in 1985, Progressive Furniture built a reputation for offering affordable wooden furniture, including bedroom sets, entertainment consoles, and occasional tables. The company operated a warehousing and distribution facility in Claremont, North Carolina, and served furniture stores and online retailers across the U.S.
Over the years, Progressive established a solid sourcing relationship with Baja Wood Internacional, a Mexico-based manufacturer that produced about 60% of its products. This partnership was instrumental in maintaining the company’s supply chain and product offerings, ensuring that retailers received quality goods at a competitive price point.
Challenges Leading to Closure
The decision to cease operations stems from a confluence of factors:
- Supplier Disruption: The closure of Baja Wood Internacional disrupted the supply of key products, severely impacting Progressive’s operations.
- Economic Pressures: Rising labor and raw material costs, interest rates, and a slowdown in the real estate market contributed to a challenging business environment.
- Tariff Impacts: International tariffs, particularly those influenced by trade policies over recent years, added financial strain to the company’s operations.
- Retailer Bankruptcies: The closure of key retail accounts further exacerbated the company’s financial difficulties.
Dan Kendrick acknowledged the complexity of the situation, stating, “It was just kind of the perfect storm.”
The company tried to adapt by exploring new suppliers and streamlining its operations, but these efforts were not sufficient to offset the broader market challenges. The combined effects made continued operation financially unsustainable.
Support for Employees and Customers
Progressive Furniture has committed to supporting its employees through the transition, including assistance in finding new opportunities and offering severance packages where applicable. Leadership has also communicated transparently with its workforce throughout the process, emphasizing appreciation for their years of service.
Customers will continue to be supported through the winding-down period. The company plans to fulfill existing orders and honor warranties until operations officially end at the close of 2025. Retail partners have been notified and are working to shift to alternative suppliers to ensure product availability for consumers.
Industry Implications
The closure of Progressive Furniture highlights the growing pressure on mid-sized manufacturers, as they grapple with inflation, shifting consumer demands, and an evolving trade landscape. The American furniture market, once dominated by domestic manufacturers, has increasingly relied on international partnerships for cost efficiency. However, these relationships can also become vulnerabilities when geopolitical or economic changes occur.
Retailers like Walmart, Target, Home Depot, and Wayfair—who sold Progressive’s products—will now need to find new suppliers. This may lead to shifts in product offerings, pricing, and delivery timelines as new sourcing relationships are established.
Industry experts suggest that more closures or restructurings may be on the horizon as companies struggle with rising costs and heightened competition from global manufacturers. For consumers, this could mean a narrower selection of affordable home furnishings in the near term, as the market recalibrates.
Looking Ahead
Despite the unfortunate end of Progressive Furniture’s journey, the company leaves behind a legacy of value-focused furniture and loyal customer relationships. The decision to shut down was not made lightly, and reflects the broader challenges many U.S. manufacturers face today.
As the industry evolves, stakeholders are hopeful that new opportunities and innovations will emerge, potentially ushering in a new era of American manufacturing resilience.
