Major Furniture Manufacturer Sells in $18 Million Deal

Originally published October 24, 2025. This version was rebuilt from GigaCloud's SEC filings, the University of Michigan survey and the tariff proclamation for the FIN archive, and the facts are as of that date.

The deal news of the week came from a company better known for moving furniture than making it. GigaCloud, an online marketplace for large parcel goods, agreed to buy a furniture supplier that sells to brick-and-mortar stores.

The short version

• GigaCloud agreed to buy New Classic Home Furnishing for $18 million.
• The University of Michigan's preliminary October sentiment index was 55.0.
• Duties on upholstered wooden furniture, cabinets and vanities had been in effect since October 14.

GigaCloud buys New Classic

GigaCloud Technology signed a binding term sheet to acquire all of New Classic Home Furnishing for $18 million. New Classic, based in Fontana, California, is a furniture distributor that GigaCloud said earns about $70 million a year selling to more than a thousand retailers, mostly brick-and-mortar stores.

The deal gave an online platform a direct line into traditional furniture retail, and gave a mid-size supplier a larger partner at a time when tariffs were squeezing importers.

Update. GigaCloud completed the acquisition on January 2, 2026.

Sentiment stays low

The University of Michigan's preliminary October reading of 55.0 was essentially unchanged from September's 55.1 and well below a year earlier. Consumers kept citing high prices and a softer job market.

Tariffs settle in

Section 232 duties of 25% on certain upholstered wooden products and on kitchen cabinets and vanities had been in effect since October 14, with increases scheduled for January. Suppliers were adjusting prices and sourcing, and consolidation was one way to spread the cost.

Update. The January increases were delayed to January 1, 2027.

Scale as a strategy

With shoppers cautious and duties rising, size was becoming a way to survive. Expect more deals like this one, where a supplier with steady customers joins a larger platform.

Related on FIN

• Follow the Tariff Dollars
• Furniture Sales Got Revised Down. Consumers Got Gloomier.

Sources

• GigaCloud Technology Inc., Planned acquisition of New Classic Home Furnishings (SEC filing)
• GigaCloud Technology Inc., Completion of New Classic acquisition (Jan. 2, 2026, SEC filing)
• University of Michigan, Surveys of Consumers, preliminary October 2025
• The White House, Proclamation adjusting imports of timber, lumber and their derivative products (Sept. 29, 2025)
• The White House, Amendments to the timber and lumber proclamation (Dec. 31, 2025)