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Howard’s equipmenta long-term stability in the southern Californian Home Goods Market has suddenly closed all eight of its remaining stores and filed for Chapter 11. bankruptcyDue to which customers and employees got upset.
“Despite our best efforts to overcome Tariff“The decline in consumer spending, and other macroeconomic challenges – we have made the difficult decision to file for bankruptcy and close our doors,” explained David Goodrich of law firm Golden Goodrich. Southern California News Group,
“This was not a decision taken lightly, but one that became necessary given the current economic scenario.”
According to Goodrich, Howard plans to file for Chapter 11 bankruptcy in Los Angeles, allowing it to continue operating under court supervision while attempting to reorganize and emerge as a viable business.
Howard’s attorney did not disclose the company’s debt to SCNG or indicate whether it might successfully emerge from bankruptcy.
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The closure, occurring just a week after Black Friday, gave no warning to customers and reportedly only two days’ notice to employees, leaving many people unsure of their recent orders as Howard’s website and phone lines are now offline.
Goodrich told SCNG that consumers who paid for undelivered products may receive a partial refund, and some devices in stock may be picked up, although details of the recovery process will be provided in the bankruptcy filing.
In recent days, customers have reportedly turned to the news outlet for assistance in receiving their ordered devices or to get refunds for payments dating back to October.
Some people, like Greg Bingham, who bought a washer and dryer eight weeks ago, found stores closed and calls unanswered.
La Habra Heights resident Karin Shoup, who purchased a $16,000 French-door refrigerator, faced delivery delays and was reportedly told her appliance was being held at Howard’s warehouse in City of Industry, located in the San Gabriel Valley in L.A., causing her to dispute the charge through her credit card.
Howard, originally based in La Habra, moved its headquarters to City of Industry in December 2024 and was acquired in April by Newport Beach-based private equity firm S5 Equity to support its financial turnaround.
Founded in 1946 as a radio repair shop in San Gabriel, Howard grew into a major SoCal appliance retailer, which later sold televisions and mattresses.
The company once operated at least 17 stores in SoCal and recently dropped to eight locations. Its website went offline from Friday.
About 100 employees were reportedly informed on a Zoom call on Thursday that they would be laid off and the company would cease operations on December 6.
Goodrich’s statement claimed that Howard expresses “deep gratitude” to his team of “staff who work tirelessly” with the support of the community.
“We are currently working through the legal process to ensure a specific and orderly closing,” he said.
Independent Goodrich has been contacted for comment.
S5 Equity, led by founder David Steinhafel and the Steinhafel family, is active in acquisitions through 2022, including Viens Cellars in Temecula and Minnesota-based Heartland America.
The family has ties to Greg Steinhafels, the former CEO of Steinhafels Furniture and Target Corp. in Wisconsin, who stepped down in 2014 after a massive data breach that affected 40 million credit and debit card accounts.