Seating and Desk Maker Cherry Man Industries Files for Chapter 11 Bankruptcy

From iconic department stores to entertainment giants, the coronavirus has seemingly spared no one in its devastation of the U.S. economy.

Falling business demand, reduced corporate spending, work-from-home options continue to take their toll on the contract furnishings industry that has been struggling for the past several years as corporations try to figure out what the workplace should now look like.

Even as the economy slowly reopens, companies are now only starting to bring back workers - at least those who want to come back, creating continuing problems for the industry.

While bankruptcy doesn't inherently mean that a company will go out of business — it's more a financial restructuring — it does spell news of changes to come.

Last Thursday (March 17, 2022), Cherry Man Industries, a provider of task seating and desking (through their idesk division), filed for a voluntary Chapter 11 bankruptcy in the Central District of California.

The company listed estimated assets above $100 million and estimated liabilities between $10 million and $50 million. Major creditors include Cathay Bank, owed $13.8 million, City Ocean International, Inc., a freight forwarder, owed $577,695; product supplier QX-Oriental International owed $949,986; product supplier Zhejiang Walsn Furniture, owed $557,759.

The Bankruptcy Court has set a status conference for April 12th, with a meeting of creditors set for April 20, 2022.