Pirch Bankruptcy Leaves Interior Designers and Clients Out Thousands

Pirch, a high-end appliance retailer based in San Diego County, has filed for Chapter 7 bankruptcy, owing between $100 million and $500 million to 1,000 to 5,000 creditors. The company abruptly closed all of its showrooms in March 2023, citing the need to complete a "go-forward plan."

The bankruptcy filing, made on April 19, 2024, indicates that Pirch's estimated assets are in the $10-50 million range. The store closures have left interior designers with costly unfilled orders and clients out thousands of dollars. Whitney Solomon, an interior designer who used Pirch for many projects, said her client is out around $25,000 due to the issues with Pirch. Other designers have reported larger outstanding orders ranging from $50,000 to $150,000.

Why this matters: The bankruptcy of Pirch, a prominent high-end appliance retailer, has far-reaching consequences for the interior design industry and luxury home market. The financial losses suffered by designers and their clients highlight the risks and challenges faced when relying on a single supplier for major projects.

Pirch faces a lawsuit from American Express seeking to collect up to $33 million in credit card transaction chargebacks. A former customer has also filed complaints with local district attorneys alleging breach of contract and fraud against the company.

Michael O'Halloran, a bankruptcy lawyer, stated that it is unlikely the lower-level creditors, such as homeowners and interior designers, will be able to recover much, if any, of the money owed to them. "The company's main assets were its brand and showrooms, which it likely did not own," O'Halloran explained.

The cause of Pirch's bankruptcy remains unclear, and the company has not responded to requests for comment. Pirch has been facing financial difficulties and has been sued by customers, landlords, and employees in recent months. The company has not yet announced a reopening date for its showrooms, warehouses, or offices across California.

Key Takeaways

• Pirch, a high-end appliance retailer, filed for Chapter 7 bankruptcy, owing $100M-$500M.
• Pirch abruptly closed all showrooms in March 2023, leaving designers and clients unpaid.
• Pirch faces a $33M lawsuit from American Express and complaints of breach of contract.
• Designers and clients are unlikely to recover much of the money owed by Pirch.
• The cause of Pirch's bankruptcy remains unclear, and the company has not responded to requests.