California Appliance Chain Howard’s Closes Doors, Files Bankruptcy

Howard’s Appliance, a well-established retailer in Southern California, has abruptly closed its eight remaining stores and filed for Chapter 11 bankruptcy. The decision, announced on December 6, 2024, has left both customers and employees in a state of shock. According to David Goodrich from the law firm Golden Goodrich, the company faced significant challenges such as tariffs and decreased consumer spending, prompting this difficult decision.

The bankruptcy filing allows Howard’s to operate under court supervision as it seeks to reorganize its operations. Goodrich did not disclose the company’s total debt nor provide insights into the likelihood of a successful recovery from bankruptcy. The swift closures, which occurred just after Black Friday, provided little to no warning for customers and only a two-day notice to employees.

With the company’s website and phone lines now offline, many customers are uncertain about their recent orders. Goodrich indicated that consumers who have paid for undelivered products may receive partial refunds. He also mentioned that some in-stock appliances could still be picked up, but the specifics will be outlined in the bankruptcy filing.

Numerous customers have reached out to news outlets seeking assistance with their orders. One such individual, Greg Bingham, reported that he purchased a washer and dryer eight weeks ago but found all stores closed and calls unanswered. Another customer, Karin Shoup, spent $16,000 on a French-door refrigerator, only to face delivery delays. She was told her appliance was being held at Howard’s warehouse in the City of Industry, leading her to dispute the charge with her credit card company.

Founded in 1946 as a radio repair shop in San Gabriel, Howard’s Appliance expanded over the decades to become a significant player in the Southern California market, offering a range of home appliances, TVs, and mattresses. At its peak, the company operated more than 17 locations but had recently dwindled down to eight stores.

The company’s headquarters moved to City of Industry in December 2024. In April, Howard’s was acquired by S5 Equity, a private equity firm based in Newport Beach, in hopes of revitalizing its financial standing. S5 Equity, led by founder David Steinhafel, has been involved in various acquisitions since 2022, including ventures like Wiens Cellars in Temecula.

Approximately 100 employees were informed of their layoffs during a Zoom call on Thursday, as operations ceased. Goodrich expressed gratitude for the employees’ efforts and the community’s support during this challenging time. He stated that the company is committed to navigating the legal process to ensure an orderly closure.

As the situation develops, many former employees and customers await clarity on the recovery process and the fate of their outstanding orders.