by Tariff uncertainty was a major risk factor for China-made line of dining, occasional and upholstery
ARCHDALE, N.C. — Debrah Furniture USA, a division of Chinese furniture manufacturer Debrah International, has decided to cease operations in the U.S. market.
In a move directly related to the imposition of China tariffs, the company said it was unable to withstand the uncertainties involving the current rate, which stands at 55% pending further negotiations between the two countries. Before and during market, the rate was as high as 145%, which was lowered to 30% last month, only to be raised again to 55% several weeks later.
The company was formed in August 2024 and made its debut here last October with a line of middle- to upper-middle-priced dining, occasional and storage furniture along with some upholstery. The line was produced at the parent company’s manufacturing facilities in Guangzhou, China.
“We can’t do anything until this tariff thing is settled,” said CEO Bill Cubberley, noting that the company produces 100% of its furniture mix in China and is not considering moving product to Vietnam or Cambodia as other manufacturers have done.
“Right now the industry is going through a tough time,” he added. “What is going on is a total shame, and while it may be good in some ways, it hasn’t helped us, that’s for sure.”
He noted that the parent company is still in business in China and makes products for its own stores as well as customers in other countries outside China.
The company showcased a line of 135 individual items for U.S. consumption and has generated some activity and interest from customers here who could buy either container-direct or from its North Carolina warehouse.
However, Cubberley said the company’s decision to carry a limited number of each item was a challenge for customers wanting additional backup inventory. A better strategy, he said, would have been to carry half the number of SKUs and back it up with more inventory.
“They couldn’t place it anywhere because everybody said to me ‘If I put it on the floor, where is the backup?’” Cubberley said, noting that the domestic warehouse had about $200,000 in inventory representing a relatively small number of individual items.
Yet given the situation that has evolved with tariffs, loading up more inventory right now would have been too risky, particularly with the pricing of finished goods being an unknown until the China tariffs are finalized.
“There was nothing wrong with the line. The line is great,” Cubberley added, noting that it is also difficult for a newer company to compete with other more well-known resources in the market. “But I couldn’t do that right now. And since we didn’t have the placements, nothing has happened.”
Another challenge, he said, is that the company didn’t offer bedroom, which likely held some customers back from buying certain groups they would have preferred to show with a bedroom suite.
He said that the company has gotten out of its lease for its High Point showroom in the Suites at Market Square. It also is selling off about $15,000 worth of samples, which he said will allow it to pay any final bills owed.
At some point, the company could decide to reenter the U.S. market. But that obviously won’t happen under current conditions impacting the entire global economy.
“Nothing is going to happen until this tariff question is settled,” he said, adding. “And if we redo this, and maybe we will, we will come back with a full line of bedroom, dining and occasional.”
