A Home Improvement Retailer Now Makes Decision to Close All Stores • FrankNez Media

A home improvement retailer has now made the difficult decision to close all its stores after a 47 year run.

On August 18, 2025, Rosso Furniture & Décor, a beloved 47-year-old furniture retailer based in Northern California, announced the permanent closure of its last two remaining stores in Morgan Hill and Gilroy, marking the end of its operations after nearly five decades in business.

The decision, reported by TheStreet, comes as the company faces insurmountable economic pressures, including rising labor and product costs, high inflation, and a sluggish real estate market.

With no plans to file for bankruptcy, Rosso began liquidation sales at both locations, offering deep discounts on high-quality furniture and home décor, leaving loyal customers and the retail industry reflecting on the broader struggles facing brick-and-mortar stores.

Rosso Furniture’s Legacy and Closure

Founded in the late 1960s by Jaime Rosso Sr. in San Bernardino, California, Rosso Furniture & Décor grew into a regional staple, with sons Anthony and Jaime Jr. opening stores in Gilroy in 1978 and later in Morgan Hill. The family sold the Northern California locations to current owner Melissa O’Malley in 2021, a year after the Covid-19 pandemic began.

Despite its reputation for offering name-brand furniture from American Drew, Flexsteel, La-Z-Boy, and others, the company announced on August 12, 2025, that it would cease operations due to “ongoing economic challenges,” as reported by TheStreet.

The Morgan Hill store launched its liquidation sale on August 14, while the Gilroy outlet’s closing sale was already underway, offering discounts on items like floor clocks and heirloom rugs across 70,000 square feet of combined showroom space.

The company did not specify when its original San Bernardino store closed or provide detailed reasons for the closures beyond economic difficulties.

Rosso’s closure follows a wave of retail shutdowns, with chains like Rite Aid liquidating 1,274 stores, CVS closing 1,171 locations through 2025, and Walgreens shuttering 1,200 stores over three years, as previously reported by FrankNez Media.

Economic Pressures on the Furniture Sector

Wayfair Furniture Industry news — Furniture industry news, closures and financial struggles.

The furniture industry has faced significant headwinds, exacerbated by a stagnant real estate market and shifting consumer behaviors.

When home sales decline due to high interest rates and elevated prices, consumers are less likely to purchase big-ticket items like furniture.

Progressive Furniture, a North Carolina manufacturer supplying major retailers like Walmart and Home Depot, announced its closure in 2025, citing the shutdown of its primary Mexican supplier.

Similarly, J. Conn Scott, a 101-year-old Delaware furniture retailer, began liquidating its flagship store in May 2025 without filing for bankruptcy.

Rising tariffs, including President Donald Trump’s proposed 54% tariff on Chinese imports and 25% on Canadian and Mexican goods, have further strained the sector, increasing costs for retailers reliant on imported furniture, according to economists.

These economic challenges, combined with higher labor costs and competition from online retailers like Wayfair, have made it difficult for regional chains like Rosso to compete with national brands such as Ashley Furniture or La-Z-Boy.

Community and Industry Reactions

The closure of Rosso Furniture & Décor has resonated deeply with its Northern California customer base.

Social media posts on X reflected sadness over the loss, with one user stating, “Rosso Furniture closing after 47 years is heartbreaking for Morgan Hill and Gilroy.

Another local gem gone,” per @RetailWatcher’s August 18, 2025, post.

Industry analysts pointed to broader retail trends, with a Coresight Research report cited by TheStreet forecasting 15,000 store closures in 2025, driven by economic uncertainty and the shift to e-commerce.

The bankruptcy of other furniture retailers, like CVB Inc. (Lucid Mattress) in July 2025 due to $3.5 million in unpaid debts, underscores the sector’s fragility.

Retail experts noted that Rosso’s closure without bankruptcy filing reflects a strategic choice to liquidate assets and avoid legal complexities, similar to Trees n Trends, which shuttered its stores in 2025 after 33 years.

The move allows Rosso to sell off inventory, including high-end brands like Hooker and Lexington, at significant discounts.

Trump’s economic policies, including tariffs and immigration restrictions, could further strain retailers reliant on global supply chains, per The Independent.

As consumer confidence remains low, with Trump’s approval rating at 39% per an ABC News/Washington Post/Ipsos poll, the closure of iconic stores like Rosso may fuel public frustration with economic conditions, potentially influencing the 2026 midterms.

But I’m curious to know what you think, leave your thoughts below.

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