Furniture has always been a category that's both needed and discretionary.
You need a bed, a couch, and other basics, but where you get them from depends upon your financial situation. With people worried about the economy, their jobs, and inflation that could mean opting for cheaper options like Ikea and other discount furniture chains.
Related: Popular bakery chain files unexpected Chapter 11 bankruptcy
People can also turn to Facebook Marketplace or even Goodwill to meet their basic furniture needs. A cheap bed or couch may not last a long time, but when people are worried about money, they cut back in areas where they can.
That has been disruptive in the furniture space where a number of major names with a long history have not only filed for bankruptcy but been liquidated. The challenging economic environment has claimed several big-name players, including Mitchell Gold + Bob Williams, which was liquidated, and Z Gallerie, which filed for Chapter 11 protection, then sold its assets in May.
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It has been a bleak period for furniture retailers as many experienced higher sales during the Covid pandemic. Now, another higher-end brand has abruptly filed Chapter 7 bankruptcy and closed its US stores while fighting to keep operating in its home market.
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High-end home furnishings chain fights for survival
OKA may not be a household name in the US, but it has a storied history.
"What is OKA all about? Simply put, it’s a love affair with living well. Since the very beginning, we’ve been on a mission to create things that make time spent with friends and family more memorable. We believe that’s the secret to living beautifully: enjoying it," the company shared on its website.
The company sells more than furniture. It's sort of a lifestyle brand that covers the entire house.
"OKA started small, with three women bringing unique designs from the Far East to shoppers in the West," the company posted. "Lady Annabel Astor, a serial entrepreneur on a mission to find special items to decorate her holiday home with, invited two friends along: her sister-in-law Sue Jones, whose decorating pedigree included stints at Jasper Conran and Colefax and Fowler, and Lucinda Waterhouse, a skilled horticulturist whose company made exquisite faux flowers. Together they set out to create a catalogue of charming home upgrades."
That vision is in jeopardy as the company faces financial challenges that threaten its survival. It has already closed its American operations, which it shared with customers in a terse statement on its website.
"As a result of the Chapter 7 filing, we have ceased all business operations in the US effective immediately. As such at this time, we are no longer accepting new orders via our US website or stores," the company shared.
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OKA fights for survival
While OKA has given up its US operations, it has a plan to survive in the United Kingdom. The company has filed in UK courts for a Company Voluntary Agreement (CVA), a kind of variant of a Chapter 11 bankruptcy filing.
If approved, the CVA would allow the company to keep operating in order to pay off its debts, according to Sky News.
"The deal would see Oka shutter one of its 13 U.K. stores; the company would also likely lay off up to 40 of its 250 remaining employees, and the article reports that a distribution center and a head office would be 'affected' by the move," Business of Home reported.
More bankruptcy:
- Popular bakery chain files unexpected Chapter 11 bankruptcy
- Struggling housing brand files Chapter 7 bankruptcy, will liquidate
- Popular restaurant chain shares bad Chapter 11 bankruptcy news
Its US operations, which included stores in Houston, Dallas, and Westport, Conn., were closed as part of a separate Chapter 7 bankruptcy filing, made on June 11. No liquidation plans have been shared for those locations.
"Oka’s owner, Investindustrial (also a major stakeholder in the Flos B&B Italia Group), is set to inject cash into the business if the deal is approved by both the courts and creditors. A partner at restructuring firm Teneo, which is overseeing the CVA, is quoted as saying that the company could receive as much as $5 million," according to Sky News.
