Another longtime family-owned retailer is shutting down multiple locations after more than 80 years in business, reflecting the growing pressures facing furniture stores as consumers pull back on big-ticket purchases.
As inflation continues to pressure household budgets, elevated mortgage rates keep home sales sluggish, and e-commerce reshapes shopping habits, companies across the furniture and home furnishings industry are reassessing where they can operate sustainably.
Founded in Detroit in 1940 as a reseller of railroad-damaged freight, Gorman’s Home Furnishings & Interior Design has grown into one of Michigan’s best-known furniture and interior design retailers.
Gorman’s Home Furnishings & Interior Design is closing two stores
Gorman’s Home Furnishings & Interior Design will permanently close two of its Michigan showrooms, with regular business concluding on Aug. 8, 2026.
The locations set to close are:
- Troy: 1465 W. Big Beaver Rd.
- Southfield: 29145 Telegraph Rd.
The company will also hold store-closing sales at both locations. A private sale for invited past customers is scheduled for Aug. 13 and 14, followed by a public sale beginning Aug. 15, according to its website.
Gorman’s said it will continue fulfilling existing orders, completing scheduled deliveries, and supporting active interior design projects. Customers do not need to take immediate action unless contacted by the company.
The closures will reduce Gorman’s showroom footprint while allowing the retailer to concentrate its operations at its remaining Michigan locations, which include:
- Novi: 27800 Novi Rd.
- Farmington Hills: 23231 Industrial Park Dr., Suite A
Why is Gorman’s Home Furnishings & Interior Design closing locations?
The decision is part of a strategic consolidation designed to better align the company’s people, inventory, and resources within a more sustainable operating structure.
Gorman’s said it hopes to retain key employees, maintain current compensation where possible, and potentially expand its remaining operations. Individual staffing decisions and transition details will be communicated directly to affected employees.
Here’s some of my previous coverage of store closures:
- 88-year-old retailer closing 75 stores, slows expansion
- Sportswear giant continues store closures nationwide
- Grocery chain makes final major business closure
“We believe it is important to maintain a physical showroom where customers can experience quality furnishings, discover new ideas and work directly with talented interior designers,” said Gorman’s CEO Jonathan Moray in a statement.
“By concentrating our operation around Novi and Farmington Hills, we can continue serving customers throughout metro Detroit and Michigan while building a more focused foundation for the future.”
Moray said the Novi showroom made the most sense to retain among the company’s three primary stores because it is roughly 50,000 square feet and large enough to showcase Gorman’s full range of products and services, according to Furniture Today.
By comparison, the Troy and Southfield showrooms each span between 20,000 and 30,000 square feet. The Novi location is also situated in a growing suburban retail area, placing Gorman’s closer to a large concentration of customers across metro Detroit.
Why furniture retailers are closing stores
The furniture industry has faced slowing demand as elevated mortgage rates, high home prices, and persistent inflation discouraged home purchases and remodeling projects. With fewer consumers moving into new homes, many retailers have reported softer furniture sales while continuing to face high operating costs.
Several furniture companies have already been forced to scale back operations or seek bankruptcy protection:
- Ikea: Closed at least four U.S. locations in 2026 and seven large-format stores in China, TheStreet reported.
- Restoration Hardware: Exited the Milwaukee market in March 2026, Urban Milwaukee reported.
- American Signature, Inc: Filed for Chapter 11 bankruptcy in November 2025 and permanently closed all stores operating under its American Signature Furniture and Value City Furniture brands, according to its website.
- At Home: Filed for Chapter 11 bankruptcy in June 2025 and closed approximately 30 underperforming stores, Business of Home reported.
“There’s going to be a lot of competition that’s not going to make it through these times,” RH CEO Gary Friedman said in the company’s fourth-quarter fiscal 2026 earnings call. “There’s been greater fallout in the furniture business over the last few years than in any time in history.”
Although furniture retailers often generate gross margins between 40% and 60%, high expenses for rent, labor, warehousing, and delivery typically reduce net profit margins to roughly 3% to 6%, according to Oppein Home.
Gorman’s latest consolidation reflects the difficult environment facing furniture retailers nationwide. Even long-established, family-owned businesses are increasingly shrinking their footprints to lower costs, improve efficiency, and concentrate resources on their strongest-performing locations while continuing to serve customers through fewer stores.
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