Another home furnishings retail chain has sought Chapter 11 bankruptcy protection as it deals with higher costs, reduced sales, a downturn in the housing market, and President Trump’s tariffs.
American Signature Inc (ASI), parent company of American Signature Furniture and Value City Furniture, said Sunday that it has secured $50 million in debt financing as it seeks a buyer in an auction process. Here’s what to know.
What is ASI and why is it bankrupt?
Founded it 1948 and based in Columbus, Ohio, American Signature Inc is the parent company of two home furnishings retail chains: American Signature Furniture and Value City Furniture.
Combined, the company has 120 stores across 17 states, it said in a court declaration over the weekend.
The Value City brand is spread out across more states, with stores in Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, North Carolina, New York, Ohio, Pennsylvania, and West Virginia.
American Signature, meanwhile, has locations in Delaware, Florida, Georgia, and Tennessee.
Additionally, the company has distribution centers in Ohio, Georgia, Indiana, and California, two of which are owned and two of which are leased.
ASI employs roughly 3,000 people.
As for why it’s filing for bankruptcy, the retailer noted that it had experienced a period of rapid growth during the COVID-19 pandemic, but that sales have slipped over the last year.
It cites a number of reasons for its dire straits, notably “one of the most severe housing market declines in recent history.”
Macroeconomic factors including rising interest rates and inflation have further exasperated the situation for ASI, as have “newly established tariffs.”
Which stores are closing as part of this process?
The company said in its bankruptcy announcement that it expects stores to remain open throughout the process.
However, in court filings it has identified five locations that it plans to close by early next year:
- Value City Furniture: 2320 Sardis Road North, Charlotte, NC 28227
- American Signature Furniture: 1777 Galleria Blvd, Franklin, TN 37067
- American Signature Furniture: 2130 Gallatin Pike North, Madison, TN 37115
- American Signature Furniture: 2821 Wilma Rudolph Blvd, Clarksville, TN 37040
- American Signature Furniture: 2075 Old Fort Parkway, Murfreesboro, TN 37129
Liquidation sales have already begun at these locations and are expected to be completed by the end of January 2026, court filings show.
The company has enlisted SB360 Capital Partners to help with store closings and has warned that additional stores may close as the consultation process continues.
It was not immediately clear how many job losses are expected. Fast Company reached out to ASI for additional details and will update this post if we hear back.
What happens next?
ASI has entered into an agreement with a so-called stalking horse bidder owned by the Schottenstein family, whom Columbus Monthly has referred to as the Ohio capital’s “last dynasty.”
Holding company Schottenstein Stores Corporation also owns American Signature Inc, meaning the furniture chain could stay in the family.
However, American Signature plans to seek a higher bidder during an auction process within about 45 days.
American Signature’s bankruptcy follows a similar move by fellow home furnishings retailer At Home, which sought Chapter 11 protection in June and has closed a number of locations this year.
This story is developing…