Another major furniture retailer has succumbed to financial pressures as American consumers delay home improvement projects amidst economic uncertainty.
A 75-Year Legacy Faces Chapter 11
On Sunday, American Signature, the 75-year-old furniture corporation operating Value City Furniture and American Signature Furniture stores, filed for Chapter 11 bankruptcy protection. The retailer, which employs approximately 3,000 people across more than 120 stores, cited one of the most severe housing market downturns in recent history as the primary cause.
This bankruptcy filing serves as a stark indicator of America's declining housing sector, following similar struggles from other home furnishing chains and reports of slumping sales at major home improvement outlets.
Restructuring and Liquidation Sales Begin
According to a declaration from co-chief restructuring officer Rudolph Morando, the company initiated liquidation sales prior to the filing and plans to shutter 33 locations as part of its restructuring plan. This represents over a quarter of its American store portfolio.
Several locations are already offering store-wide discounts of 20 percent to 40 percent off. Despite the financial turmoil, American Signature has confirmed it will still proceed with Black Friday sales both in-store and online as it seeks a buyer and requires debt financing to continue operations.
From Pandemic Boom to Financial Collapse
The company's financial descent has been dramatic. It marks a sharp reversal from the early-pandemic boom in 2021, when lockdowns and stimulus checks fuelled a 37 percent surge in sales as consumers upgraded their homes for remote work.
However, that momentum proved short-lived. Net sales plummeted by nearly $150 million from 2024 to 2025, while losses widened by $52 million. In its petition, the company disclosed it owes between $500 million and $1 billion to creditors, including major unsecured players like Sealy Mattress Manufacturing, Tempur-Pedic, and Ashley Furniture Holdings.
American Signature is not alone in its distress. Since the pandemic, a wave of home furnishing retailers including Bed Bath & Beyond, Conn's HomePlus, and The Container Store have tumbled into bankruptcy. This trend was echoed last week when The Home Depot reported serving fewer customers than expected, with its CFO noting consumer hesitation due to an uncertain economic environment and concerns about declining home prices and job security. Lowe's reported a similar downturn, missing Wall Street expectations.
