Willow Furniture files for bankruptcy

The Willow furniture stores on the Route 117 Bypass in Bedford Hills. THANE GRAUEL PHOTOS

The Willow furniture stores sign in Bedford Hills.

By JEFF MORRIS 

Willow Furniture, a longtime mainstay of the Bedford business community, has filed for bankruptcy.

The retailer, known officially as Country Willow Ltd. but doing business as Willow Furniture and Design, filed a Voluntary Petition of Chapter 7 bankruptcy in New York Southern Bankruptcy Court on Feb. 2. It is now known as Case No. 7:26-bk-22112.

The filing follows weeks of speculation about what became of the business. In mid-December, a message was taped to the front door, saying, “We regret to inform you that Willow Furniture is closed effective immediately and until further notice. We deeply appreciate your understanding. Updates will be shared as soon as they become available.”

Customers received a similar message via email, and a banner was added to the top of the Willow website saying the showroom was temporarily closed.

However, no further explanation was forthcoming. Other than the banner, the Willow website remained unchanged, with information about a “Winter Sale.” In fact, on Dec. 13 the store posted on its Facebook page that it was having a “3-Day Flash Sale Dec. 12-15.” That post is still up, and the store itself appears frozen in time, its contents still visible through the glass.

Customers posted on social media in December about driving to the store in expectation of a 30% off sale, only to find it closed and the note on the door. Calls to the business went unanswered.

Speculation spread, with multiple comments on different social media sites wondering about the status of the store and unfilled orders. Many lamented the closure, and there was praise for the business, such as “It was such a nice store with beautiful things” and “I absolutely loved them!” Social media speculation continued this month.

The Recorder was able to contact Willow’s owner, Cori Estrow, online, to ask what was going on. 

“Unfortunately we had to close our store due to being crushed by the internet, economy, politics etc.,” Estrow said. “We are still regrouping and hopefully will open again in the spring.” 

That was on Wednesday, Feb. 4 — two days after the bankruptcy filing.

The U.S. Bankruptcy Code points out that a chapter 7 filing “provides for ‘liquidation’ — the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.” 

According to uscourts.gov, a site maintained by the Administrative Office of the U.S. Courts on behalf of the federal judiciary, “debtors should be aware that there are several alternatives to Chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer  to remain in business and avoid liquidation.”

It went on to say businesses do not have to pass a means test, “because their Chapter 7 filing is typically already a means to an end: liquidating the entire enterprise.”

Beginning as a small mom-and-pop shop in Katonah selling farm tables and home accents, Country Willow moved to a larger space on the Route 117 Bypass in Bedford Hills in 2006. It continued to expand, taking over adjacent stores and growing to over 35,000 square feet, and in 2021, it celebrated its 25th anniversary. In 2023, Country Willow was a big part of the Bedford Economic Alliance launch event, with both Estrow and CEO Mike Liebowitz part of a panel of Bedford business owners.

In October 2024, to much fanfare and a ribbon-cutting ceremony, Country Willow was rebranded Willow Furniture and Design and introduced a remodeled and remerchandised showroom. Liebowitz, who had joined as CEO in 2018, was quoted as saying, “Our showroom remodel was the perfect time to align our brand name with the full scope of services and products we offer.”

But according to his LinkedIn page, Liebowitz only remained with the company for two more months; by January 2025 he was working in Pennsylvania. An attempt to reach him to ask for comment about his former company was unsuccessful.

The Chapter 7 bankruptcy filing, filed by Jeffrey A. Reich of Reich Reich & Reich P.C., is assigned to Judge Sean H. Lane. Exhibits listed with the filing include “Sold Inventory (Still in Store & Partially or Fully Paid For)” “Problem Coded Inventory” “Rugs Inventory” “Furniture Inventory” “Accessories Inventory” “Miscellaneous Inventory” and “Office Fixtures.”

The filing lists assets of $1 million to $10 million and liabilities of $10 million to $50 million, with 50–99 creditors named. According to industry publication Furniture Today, sources familiar with the situation said companies including Planned Furniture Promotions and Lynch Sales Company had been communicating with the retailer. It said Planned Furniture Promotions is a Connecticut-based retail liquidation and promotional event firm that specializes in conducting store closing, going-out-of-business and special sales events for furniture and mattress retailers.