The business has more than 60 stores across the UK, although 25 have already been sold to a new owner by administrators from Leonard Curtis. Uncertainty surrounds the future of the remaining stores and staff.
The failure of Walmsley’s, which specialises in sofas, beds and dining furniture, follows the recent demise of Floors-2-Go, Lombok and the UK arm of Habitat.
Furniture retailers have been particularly badly hit as cash-strapped consumers put off purchases of big ticket items.
The new owner of the 25 stores, reported to be a private equity firm, has also acquired all of Walmsley’s stock.
The company was founded in 1933 and claimed to have more stores on the high street than any other furniture retailer.
In 2008, the company was accused of selling sofas that left people with rashes and burns.
Walmsley, along with Argos and Land of Leather, were alleged to have imported sofas from China containing a chemical fungicide called dimethyl fumarate.
More than 5,000 people joined a group litigation, making it the largest consumer injury class action in UK history.
The chemical was subsequently banned and around 1,650 people are understood to have received compensation worth £20 million.