OKA, a high-end home furnishing store, has shut down in the United States suddenly after filing for Chapter 7 bankruptcy. This sudden move comes as the furniture chain has struggled to thrive during a difficult period in the U.S.
While OKA may not be as well known in the U.S. as it is overseas, the company does own and run three different stores located in Dallas, Houston, and Westport, Connecticut. Because of this Chapter 7 filing — which occurred on June 11 — all of these U.S. stores will now be completely closed. They will not be reopened in the future.
The company has stated that its U.S. operations will fully shut down. OKA also hasn’t shared any public information about the liquidation of its three American stores.
OKA Leaves the United States
In a short and to-the-point statement shared on OKA’s website, the company explained that it would cease all business operations in the United States.
The company wrote, “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.”
However, the high-end furniture company is seeking to survive overseas. While ceasing all U.S. operations and business, OKA is still looking to operate in the United Kingdom. Through this continued operation, they are also attempting to pay off its debts.
OKA filed a Company Voluntary Agreement (CVA) in the U.K. courts, which is similar to the U.S.’s Chapter 11 bankruptcy filing.
This CVA will help the company pay off its debts while it continues to operate — but only if the CVA is approved by the courts.
Upon approval, OKA will close only one of its 13 U.K. locations. The company also plans to lay off about 40 employees. This legal move may also impact OKA’s overall distribution center in the U.K., as well as its head office.
A deal also could occur which would see Investindustrial inject cash into OKA, which could result in the furniture company receiving up to $5 million.
Furniture Chains Face a Difficult Future
OKA is the latest furniture company to face extreme difficulties in 2024. So far, this year has seen furniture retailers face bankruptcies and liquidations. These major difficulties come after many furniture companies experienced high sales during the COVID-19 pandemic, when many American consumers had an influx of cash.
However, now that many consumers are holding back on splurging on items like furniture, these retailers are hurting. Instead of purchasing a high-end piece of furniture from stores like OKA, Americans are turning to cheaper stores or discounted chains.
As a result of this shift in consumer behavior, various furniture companies and home improvement stores have faced bankruptcies and liquidations alongside OKA. For example, Z Gallerie filed for Chapter 11 bankruptcy protection in October of 2023. In May of 2024, the company sold its assets.
