Fifi,
That's terrible!
If you paid by credit card do you think you can ask the bank to help you recover your deposit? I had a dispute with a travel agent 2 years ago and I informed the bank. I had to provide them with supporting documentation that I had been overcharged and I was refunded the money immediately. The merchant tried to challenge the bank, but was unsuccessful.
What are you going to do now for furniture? If you're looking for 2nd hand, contact the La Leche League they tend to receive donations from time to time.
Rani