The news that American Signature, Inc. (ASI), owner of the retail brands American Signature Furniture and Value City Furniture, has filed for Chapter 11 bankruptcy protection is now official. ASI filed voluntary petitions on November 22, 2025 in the U.S. Bankruptcy Court for the District of Delaware.
Table of Contents
Background & Immediate Impacts
The filing lists estimated assets in the range of $100 million to $500 million and liabilities between $500 million to $1 billion, with an estimated 1,000–5,000 creditors.
Within the top 30 unsecured creditor list alone, ASI owes more than $80.25 million to major furniture manufacturers, logistics and shipping firms.
Key immediate points:
- ASI has secured approximately $50 million in debtor-in-possession (DIP) financing from Second Avenue Capital Partners LLC to fund operations during the restructuring.
- The Company will execute a sale process under Section 363 of the U.S. Bankruptcy Code, aiming for a competitive auction of substantially all assets within approximately 45 days.
- Stores and websites for American Signature Furniture and Value City Furniture remain open for now, and customer orders are still being fulfilled.
Reasons Behind the Chapter 11 Filing
In its public statement, ASI cited “ongoing macroeconomic headwinds” that have impacted the home-furnishing sector, prompting evaluation of the best path forward. Some specific contributing factors:
- Store closures and market exits: For example, ASI recently exited the Nashville, Tennessee market and began liquidation sales at multiple Michigan stores.
- Supply chain and vendor pressures: By listing major furniture manufacturers and logistic firms among the largest creditors (for example, Man Wah MCO at $14.6 million owed) the company highlights upstream stress.
- The broader retail environment remains challenging: high inflation, weak discretionary spending, and competition from online channels all converge on furniture retail.
What This Means for Customers, Employees & Creditors
For customers:
- Transactions are still being processed: ASI’s announcement notes orders will continue to be fulfilled and stores remain operational for now.
- Sales and discounts: Pre-filing liquidation sales have already begun at some locations. The filing notice even references “deep Black Friday discounts” ahead of the holiday season.
- Caveat emptor: While stores are open, a bankruptcy process introduces risk — warranty support, returns or future service may be subject to the court’s restructuring outcome.
For employees:
- A Notice under the WARN Act was issued on November 21 indicating the company’s offices in Columbus, Ohio (4300 E. Fifth Ave) will close due to “significant decline in sales, resulting liquidity challenges and the company’s anticipated Chapter 11 bankruptcy filing.” Layoffs are scheduled to begin as early as January 20, 2026 (or within 14 days thereafter).
- Continued operations are planned for now, but employee benefits, wages and programs will require court approval through motions as part of the bankruptcy.
For vendors and creditors:
- With over 1,000 creditors and liabilities potentially approaching $1 billion, recovery will be uncertain. The top 30 unsecured creditors alone are owed $80.25 million.
- A stalking-horse bidder agreement with ASI Purchaser LLC is expected; this means assets may be sold and certain liabilities assumed by the buyer, influencing what unsecured creditors receive.
Key Dates & Process Milestones
| Date | Event |
|---|---|
| Nov 21 2025 | WARN notice issued; office closure notice and layoffs start date set. |
| Nov 22 2025 | ASI filed voluntary Chapter 11 petitions in Delaware. |
| ~45 days after filing | Auction of assets under Section 363 expected. |
What’s Next for the Retail Footprint & Brand
ASI indicated it will continue operating its core brands through the restructuring. The sale process intends for a buyer to acquire “substantially all” assets.
That said:
- The company already has closed and is liquidating some underperforming locations and markets (e.g., Michigan, Tennessee).
- Whether all stores ultimately survive or whether the buyer will restructure store count remains to be seen.
- For shoppers watching for discounts, the holiday season may offer deeper markdowns given the inventory pressures.
In short: the “American Signature Furniture Chapter 11” filing signals a major shake-up in one of the longstanding U.S. furniture retailers. For customers, employees and vendors the road ahead is uncertain but clearly marked by restructuring. Stay tuned for updates as auction bids are received and court decisions shape what remains of the brand.
If you’re a customer, vendor or employee of American Signature Furniture (or Value City Furniture) please leave your thoughts or questions below — this story will continue to evolve.