The answer is NO. Ashley Furniture is not going out of business. Instead, they are closing some of their stores in some specific areas.
It is evident after carefully examining the outcomes of our research that the furniture company is about to stay in the trade.
On top of that, Ashley can be run by father and son. They have been producing and supplying high-quality home furnishings all around the world.
Now come to the main point, why the shutdown rumors spread regarding Ashley Furniture.
Actually, because of the Covid-19 pandemic, the company had to shut down some of its locations.
To keep everyone safe and secure during that time, they took this difficult decision. For instance, in Etna Township, the company shut down its distribution facility.
I applaud them for prioritizing our safety. But they are not going out of business anyway.
What is going on with Ashley Furniture?
Ashley Furniture is mainly facing financial problems. During Covid, it simply stopped some of its stores to protect that area’s people from the deadliest Covid.
The furniture company switched to appropriate action by temporarily shutting a number of stores when the horrific Covid-19 attack occurred.
They took this measure to protect clients’ and employees’ health and welfare. The company thinks about its customers’ safety.
Let’s discuss distribution facilities now. That was a challenging choice for the company to close its distribution center in Etna, Ohio. It’s noteworthy that this occurred three years later the center’s first opening.
Industry of Ashley Furniture. decided to move its activities and shut down its Statesville factory.
This action was all about boosting productivity as well as coming up with inventive methods to accomplish goals.
During the Pandemic, the company’s shutdown locations are given below;
- They intend to relocate their activities away from Statesville before closing their factory there.
- In Etna, Ohio, Ashley shut down its distribution center.
- Besides, the company also closes its HomeStore Locations.
Ashley Furniture chose the prudent choice to temporarily close a number of stores because of the Covid-19 pandemic.
What is the financial condition of Ashley Furniture?
Right now, Ashley Furniture Inc. is doing great financially.
They are like a piece of technology that generates money. The company rendered $4.7 billion in turnover in 2018 and is doing well.
And get this—they generate more than $500 million annually. That is a ton of zeros.
They are not only a side business either. More than 1,000 individuals are putting in a lot of dedication to bring in that money.
According to Forbes Ashley Furniture Industries is prospering economically presently.
Wow, it’s like striking the lottery! The company had phenomenal revenues of 6.6 billion dollars in 2019.
They earned 5.7 billion dollars, 4.6 billion dollars, and 4 billion dollars, respectively, in the preceding years of 2018, 2017, and 2016.
That’s not it all, though. The company’s “Ashley Furniture HomeStore” segment is additionally not leaning forward, with approximately $223.7 million in yearly earnings.
They draw in those bucks left and right similar to an economic magnet. Therefore, this furniture industry seems to be doing well economically.
Ashley Furniture makes a ton of revenue and keeps the money coming in. In fact, they are simply a financial powerhouse.
Who did Ashley Furniture merge with?
Ashley Furniture merged with Arcadia Furniture in the 1970s.
These two giant corporations worked together since then. Even enlarging what kind of home furniture these two were giving customers along with building their own fleet of vehicles.
In 1982, the market competition bloomed up and the owner of these two decided to become one and turned into Ashley Furniture Industries.
Few styles of furniture were really developed prior to Ashley Furniture and Arcadia Furniture Corporation’s formal merger into one firm.
According to some renowned portals, Arcadia manufactured cabinets and tables at that time.
In fact, this company was manufacturing occasional tables. They were small in size that didn’t have any specific use.
After merging into one company, the owner decided the company is no longer manufacturing occasional tables. Instead, it will begin manufacturing bedroom furniture.
Why are people suing Ashley Furniture?
A customer is suing Ashley Furniture because the company’s furniture insurance policies are deceptive and unlawful.
Actually, a customer named Grasty bought a sofa (Savesto Charcoal Sofa) from Ashley Furniture with appropriate furniture protection at $2,300. But the company denied its furniture protection.
That’s why that customer filed an action lawsuit in a federal court in Florida. The action was taken on 13th September 2022.