Combined with its parent company in Texas, Chair King, it is believed to be the largest independent outdoor furniture dealer in the country.

The following years saw Fortunoff continue to struggle, and on February 4, 2008, the chain filed for Chapter 11 bankruptcy along with accepting the $100 million sale to NRDC Equity Partners,[3][4] the parent company of longtime New York retailer Lord & Taylor.

[5] Industry analysts speculated that a likely result of the buyout by NRDC would bring Fortunoff-branded jewelry and home furnishings departments into most if not all of the 47 current Lord & Taylor locations.

[7] On February 5, 2009, Fortunoff filed for Chapter 11 bankruptcy, citing a weak 2008 holiday season, ballooning costs in its partnership with Lord & Taylor and reduced borrowing capacity due to the recession.

A class-action lawsuit against Fortunoff was filed by laid-off employees who alleged violations for federal and state WARN Act laws.

It was further alleged that many of Fortunoff's vendors were lured into shipping increased consignments of merchandise and goods for the Fortunoff/Lord & Taylor venture prior to the abrupt bankruptcy filing one year and a day after NRDC's purchase of the company.

[16] As of 2018, Furniture Concepts operates Fortunoff Backyard Stores in New York, New Jersey, Connecticut, Delaware, Pennsylvania and Virginia.

In 2010, Esther Fortunoff launched fine jewelry online, followed by a retail store in 2014 near the site of the former location at the Mall at the Source.