All Value City Furniture stores across the nation have permanently closed, leaving roughly 10,000 customer orders unfulfilled. The decades-old retailer, founded in Columbus, Ohio, operated 126 stores under the Value City Furniture and American Signature Furniture brands before filing for Chapter 11 bankruptcy in November.
Attorney Laura Davis Jones told a U.S. Bankruptcy Court this month that approximately 10,000 customers have yet to receive furniture for which they paid a deposit. This figure has dropped from an initial 36,000 unfilled orders. Since the bankruptcy filing, $55 million worth of furniture has been delivered, leaving less than $12 million in undelivered claims. Customers have until April 30 to submit claims through the bankruptcy case's website.
The Schottenstein family, which founded and owned the chain, acquired the business through ASI Purchaser LLC in February and immediately began liquidating stores. The purchase price was $147.8 million, including $83.1 million in cash and $64.7 million in assumed liabilities. A subsequent settlement increased the price by $10.75 million and provided for a larger share of proceeds from real property sales.
Judge Kate Stickles ruled on February 4 that the sale represented the 'highest and best' return on the business, noting the process was conducted in good faith despite the lack of competing bids. The U.S. Trustee's Office and creditors' committee had objected to the sale due to the Schottenstein family's dual role as buyer and seller.
