In 2021, ABC Carpet & Home was in bad shape—forced into bankruptcy, it was scooped up for a song by investment fund 888 Capital Partners. At the time, there was plenty of skepticism, with many observers wondering whether an asset management company would be able to revive one of the most storied names in home retail.

Four years later, the five-story Manhattan landmark—rumored to have been doing more than $150 million in annual sales at its peak—hasn’t quite come roaring back to its former glory. But there are encouraging signs of progress.

By introducing select vintage items, expanding its soft home offerings and bringing back a sprinkling of furniture, ABC has brought its product mix closer to its original incarnation. And late last year, 888 Capital Partners reopened the 11,000-square-foot mezzanine level for the brand’s expansive rug selection. This opened up space for bed and bath downstairs and a more eclectic assortment of jewelry, tabletop, upholstery, vintage and decorative accessories on the street level.

“Our collective goal is restoring the magic of ABC while maintaining a solid business,” Suki LaBarre, the company’s vice president of merchandising and e-commerce, tells Business of Home. “It’s about doing more with less space.”

The “more” part cuts across multiple categories. While rugs still account for about 55 percent of the store’s overall volume (LaBarre declined to say how big that volume is), the additional space allows for an expanded bed and bath assortment, including leased departments for brands such as Italian bedding company Signoria Firenze, as well as ABC’s private-label collection abcDNA. Furniture, which had primarily been an online business, has returned to the store with a dedicated area for Cisco Home. More is coming, including a private-label program under the Bond Street name as well as made-to-order pieces. There is also a design studio on the new mezzanine level—ABC is working to expand its to-the-trade business (it has modestly increased its discount to designers from 20 to 25 percent on rugs).

The main floor features vintage items, an element that was a core part of the original store’s appeal. LaBarre says jewelry has been expanded based on its success last year, while beauty offerings are being dialed back, again in response to sales trends.

E-commerce, which had lagged under ABC’s former ownership, is getting more attention, said LaBarre. Online business represented just 12 percent of revenues when the store first reopened but increased to 18 percent last year, and the goal for 2025 is to bring that up to a quarter of total revenues.

LaBarre said the company remains very much a work in progress. Still, ABC has come a long way from when the original store went out of business—and there may be more to come. “Overall, our total business was up 15 percent year over year, including holiday up 10 percent,” says LaBarre. “And we’re still looking at more opportunities this year.”

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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.