A 78-year-old Canadian furniture manufacturer that owns the Bush Furniture and Bestar brands has shut down its manufacturing operations and is expected to file for bankruptcy, becoming the latest casualty of a prolonged slump in home furnishings sales.
eSolutions Furniture Group, based in Sherbrooke, Québec, announced April 30 that it had ceased production. The company's lender, Fédération des caisses Desjardins du Québec, is expected to file a motion on May 4 in the Superior Court of Québec seeking to appoint PricewaterhouseCoopers as receiver to manage the company's assets under Canada's Bankruptcy and Insolvency Act.
The company also operates Bush Business Furniture and may seek Chapter 15 bankruptcy protection in a U.S. court, which would recognize the Canadian proceeding as a foreign main proceeding and protect the company's American assets. That route is common in cross-border insolvencies involving companies with significant operations on both sides of the border.
Bush Furniture posted a notice on its website informing customers of the closure. "We're sorry for the inconvenience, but Bush Furniture has ceased operations," the message read. The company said available inventory was limited and declining, but that U.S.-based customer service representatives with an average of over 20 years of experience would remain available to help customers find comparable products.
The shutdown reflects broader pressures battering the furniture sector. Furniture and home furnishings sales have fallen for three consecutive months in 2026, according to the CNBC/National Retail Federation Retail Monitor, dropping 0.31 percent in January, 0.27 percent in February, and 0.11 percent in March on a month-over-month seasonally adjusted basis. The declines trace back to a multi-year housing slump that has suppressed demand for home goods as fewer people buy and move into new homes.
Rising costs have compounded the revenue problem. Inflation, higher labor expenses, and tariffs on imported goods have all pushed up the cost of producing and sourcing furniture, squeezing margins at a time when consumer spending on the category was already contracting. For companies like eSolutions that operate manufacturing facilities and compete in the e-commerce channel on price, those pressures left little room to absorb losses.
eSolutions is not alone. Struggling furniture companies have been closing stores and filing for bankruptcy at an elevated rate over the past year as the combination of weak demand and rising costs proves unmanageable. The Bestar brand, founded in 1948, and Bush Furniture, established in 1959, represent decades of history in the residential and commercial furniture market. Their closure signals how severe conditions have become for mid-tier furniture manufacturers without the financial cushion to weather an extended downturn.
The receiver appointment hearing is scheduled for May 4 in Québec.
