Staff at Michael O'Connor in Sunderland stepped in after hearing about the plight of World of Furnishings' customers.
The store in Fawcett Street suddenly shut its doors and has been emptied of stock – despite some customers not yet receiving their order.
Rob Stevens, managing director at Michael O'Connor, has invited anyone let down by World of Furnishings to visit his store in Holmeside, where special deals may be available for those left out of pocket.
Mr Stevens said: "We'll be happy to help customers who may have lost their deposit.
"We will have a look at every order sympathetically and try to sort something out.
"It might be that we are using the same suppliers as the store which has closed.
"Come and see us and see if we can help in some way."
Mr Stevens says he has already been able to help a number of customers who were let down by World of Furnishings.
And he promises they will not be disappointed again.
"There has been a furniture shop here for 80 years. We have been here 11 years and before that it was Thursby's, who still have a carpet concession upstairs.
"The company has been established for 25 years and are a member of Associated Independent Stores, which is a benchmark of quality and means customers can buy with confidence."
A sign at World of Furnishings confirms the company is now in liquidation, and refers customers to Taylor Rowlands, an accountancy firm in Middlesbrough.