Upscale furniture maker and retailer Mitchell Gold + Bob Williams abruptly ended its operations, the latest shutdown in a sector struggling after many consumers finished feathering their nests in the pandemic and are balking at purchasing high-priced items.

The Taylorsville, North-Carolina based company has notified about 500 employees — including signs and a note posted at its three manufacturing plants in the Tar Heel State — that it was ceasing business after it was unable to secure financing to fund its operations. Mitchell Gold + Bob Williams has about two dozen stores spanning the East and West coasts.

At least two of the retailer's brick-and-mortar retail locations were closed Tuesday. Mitchell Gold + Bob Williams has a half-dozen stores in Texas, and the one at 4519 McKinney Ave. in Dallas wasn't open. There was a sign on its front door that said it was going to be closed on Saturday and Sunday, but it remained shut. Also, the chain's store at the Cherry Creek Shopping Center in Denver was closed, though its lights were on.

Last week, Chris Moye, Mitchell Gold + Bob Williams' interim CEO, sent a letter to workers that was posted at one of the company's office doors, as well as being sent by mail and email, regarding "separation" due to facility closure. That news was first reported by The Taylorsville Times.

"As you may know, the current economic climate has presented significant challenges to the furniture industry," Moye wrote. "While we have been buoyed by the support of our wonderful employees, like yourself, [the company] has recently and unexpectedly learned that we are unable to secure critical financing to continue business operations. In the wake of this unfortunate development, the company will sadly need to wind down operations and terminate the employment of our employees beginning on Aug. 26. Because these events were unforeseen, we were unable to provide you and others with more notice of this difficult decision."

The U.S. furniture industry, which had a surge in demand at the onset of the pandemic, has seen sales drop off more recently. Many Americans shut in at home during COVID took that opportunity to buy big-ticket items, such as furnishings and consumer electronics. Now, more people are instead spending on experiences such as dining out and traveling. Also many in the low- and middle-income categories are being more careful spending because of inflation and the higher cost of necessity items including food and gasoline.

Several furniture companies have been battered and closed shop or cut back in the face of economic challenges. Earlier this month, furniture maker Klaussner Home Furnishings said it was closing its Asheboro, North Carolina-based business because its funding had been cut off. Shortly before Thanksgiving last year, furniture manufacturer United Furniture Industries, headquartered in Tupelo, Mississippi, and parent of Lane Home Furnishing, let 2,700 workers go.

And in October last year, Ashley Furniture shut its facility in Statesville, North Carolina. Furniture retailer Ethan Allen, based in Danbury, Connecticut, reported that its retail net sales dropped 17.2 % in the second quarter this year.

Mitchell Gold + Bob Williams didn't respond to an email from CoStar News on Tuesday. But the retailer's owner, Little Rock, Arkansas-based private-equity firm Stephens Group, issued a statement.

"Throughout our history, we have been able to help many companies unlock their value and succeed in the marketplace," the company said. "While we do everything we can to support our portfolio companies, how their stories play out are not always fully within our control. We invested in Mitchell Gold + Bob Williams in 2014 in full support of the company’s priorities, solid vision and unique offerings. Over the past nine years, we have worked closely with the company as it has released new and exciting collections, collaborated with various designers, and designed unique pieces that are used with love in homes all across the world."

Stephens Group said it recently invested another $20 million to restructure the retailer.

"Unfortunately, shortly after this restructuring, the company’s lender withdrew its support, forcing Mitchell Gold + Bob Williams to cease operations," said the private equity firm, which didn't comment on how or when a store wind-down would take place.

Mitchell Gold + Bob Williams has stores in several states including Texas and Colorado as well as Arizona, California, Connecticut, Florida, Georgia, Massachusetts, Michigan, New Jersey, New York, Tennessee, Virginia and the District of Columbia.

The North Carolina factories where the company is closing industrial operations are at 804 Old Landfill Road, Taylorsville; 375 Sharpe Lane, Hiddenite; and 125 Lulu Lane, Statesville.

The company was founded in 1989 by Mitchell Gold, a former Bloomingdale's furniture executive, and Bob Williams, a designer.

It not only produced furniture for its stores but was also a supplier to retailers such as RH, once known as Restoration Hardware, as well as Pottery Barn and Crate & Barrel.

When Stephens Group acquired Mitchell Gold + Bob Williams, it said the company had "transformed its business from a predominately wholesale model focused on servicing national specialty retail accounts to a retail-focused model with a comprehensive home furnishings product offering that is well-positioned for accelerated growth through the continued roll-out of signature stores and further development of a multichannel model."

CoStar News reporters Candace Carlisle and Katie Burke contributed.