Industry Shakeup. Major Bankruptcies, Recalls, and Tariff Turmoil

Originally published September 2, 2025. This version was rebuilt from the Federal Circuit's opinion and order, the Conference Board, CPSC and the bankruptcy docket for the FIN archive, and the facts are as of that date.

The last week of August 2025 packed a lot into a few days. A major tariff ruling came down, a dresser recall reminded sellers about tip-over rules, and a large online furniture brand filed for bankruptcy.

The short version

• The Federal Circuit held the IEEPA reciprocal and trafficking tariffs unlawful but kept its ruling on hold through October 14.
• The Conference Board's confidence index fell to 97.4 in August.
• CPSC announced a recall of about 3,500 Lulive dressers sold on Amazon.
• Walker Edison filed for Chapter 11 on August 28.

Tariff ruling on hold

On August 29 the U.S. Court of Appeals for the Federal Circuit affirmed that the reciprocal and trafficking tariffs exceeded the authority IEEPA gives the President. In a separate order, the court held off on making the ruling final through October 14 so the parties could ask the Supreme Court to review it, which meant the tariffs stayed in effect.

Update. The Supreme Court ruled on February 20, 2026 that IEEPA does not authorize these tariffs.

Confidence dips

The Conference Board's index slipped to 97.4 in August from 98.7 in July. Consumers were more worried about jobs and income, a weak setup for discretionary purchases like furniture.

A dresser recall on Amazon

Lulive recalled about 3,500 dressers sold on Amazon from March through June 2025, because they did not meet the mandatory federal tip-over standard for clothing storage units. The recall was another reminder that online marketplace sellers face the same rules as any furniture store.

Walker Edison files

Walker Edison, a large seller of ready-to-assemble furniture online, filed a Chapter 11 petition on August 28 in Delaware.

Update. Twin Star Home acquired Walker Edison in October 2025.

A turbulent end to summer

The tariff ruling raised the prospect of refunds but changed nothing yet at the border. Meanwhile weaker players were failing and compliance mistakes were getting caught.

Related on FIN

• Follow the Tariff Dollars
• Furniture Shoppers Are Holding Back

Sources

• U.S. Court of Appeals for the Federal Circuit, V.O.S. Selections v. Trump, opinion (Aug. 29, 2025)
• U.S. Court of Appeals for the Federal Circuit, V.O.S. Selections v. Trump, order on the mandate (Aug. 29, 2025)
• Supreme Court of the United States, Learning Resources v. Trump, opinion (Feb. 20, 2026)
• The Conference Board, Consumer confidence, August 2025
• U.S. Consumer Product Safety Commission, Lulive dresser recall
• U.S. Bankruptcy Court, District of Delaware, Walker Edison Holdco, case 25-11602, docket summary
• Z Capital Group, Twin Star Home acquires Walker Edison