The parent company of Value City Furniture has filed for Chapter 11 bankruptcy protection, announcing widespread store closures across the United States while attempting to restructure its substantial debts.
Bankruptcy Filing Details
American Signature Inc, the Columbus-based furniture retailer operating for nearly 75 years, submitted its bankruptcy petition on Sunday. Court documents reveal the company faces over $500 million in liabilities against approximately $100 million in assets, with more than 1,000 creditors affected by the financial collapse.
Rudy Morando, Co-Chief Restructuring Officer for ASI, explained the decision in an official statement. "For nearly 75 years, American Signature has served as a family-owned furniture destination that communities could rely on to provide style, quality, and value," Morando stated. "In the face of the ongoing macroeconomic headwinds that have impacted the entire home furnishing industry, the Company has carefully evaluated its options to assess the best path forward."
Store Closure Locations Revealed
The bankruptcy filing accelerates store closures beyond the four Tennessee locations announced in October. Dozens of additional stores across multiple states will either close permanently or conduct total inventory blowout sales.
The affected locations include:
- Georgia: Seven American Signature Furniture locations including Alpharetta, Atlanta, Duluth, Kennesaw, Morrow, Smyrna and Lithonia
- Illinois: Value City Furniture in Gurnee
- Indiana: Locations in Clarksville and Mishawaka
- Kentucky: Louisville store on Dixie Highway
- Maryland: Rockville location
- Michigan: Seven Value City Furniture stores including Ann Arbor, Clinton Township, Dearborn, Lansing, New Baltimore, Novi and Portage
- Missouri: St. Louis location
- New York: Amherst and Cheektowaga stores
- North Carolina: Charlotte outlet
- Ohio: Centerville and Cincinnati locations
- Pennsylvania: Mechanicsburg store
- Tennessee: Four previously announced locations in Clarksville, Franklin, Madison and Murfreesboro
- Virginia: Newport News and Richmond stores
Continuing Operations and Sales
Despite the bankruptcy proceedings, both Value City Furniture and American Signature Furniture stores and websites will remain operational during the Chapter 11 process. The company has launched aggressive sales events, including a Black Friday promotion, offering discounts ranging from 20 percent to 40 percent on selected items.
Morando emphasised the company's commitment to continuing service throughout the restructuring. "We deeply appreciate our team members, customers, and partners and are determined to serve them throughout this process," he said. "Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value."
The company, which previously operated more than 120 stores nationwide, has initiated store-closing sales with substantial discounts while inventory remains available. Customers are advised that these clearance events offer limited-time opportunities as the 75-year-old furniture retailer navigates its financial challenges.
