American Signature Inc., the family-owned parent company of Value City Furniture and American Signature Furniture, has filed for bankruptcy protection as it confronts significant financial challenges. The 77-year-old retailer, based in Ohio, cited a sluggish housing market as a contributing factor to its struggles.
As part of its restructuring plan, the company has announced the closure of more than two dozen stores across the United States, totaling 33 locations or roughly one-quarter of its retail footprint. This decision follows earlier announcements regarding store closures primarily in Tennessee. Currently, American Signature operates over 120 stores across 17 states and employs around 3,000 people.
In legal filings, the company attributed its financial difficulties to a range of issues, including rising operational costs, elevated interest rates, and tariffs implemented during the administration of former President Donald Trump. Additionally, it highlighted “one of the most severe housing market declines in recent history,” which has impacted sales. According to an analysis by Redfin, the housing turnover rate has reached its lowest levels in decades, contributing to the decline in consumer demand for furniture.
Sales figures reveal the extent of the downturn for American Signature. The retailer reported revenues of $803 million in 2025, a notable decrease from $1.1 billion in 2023. Furthermore, court documents indicate net operating losses of $18 million in fiscal years 2023 and 2024, escalating to $70 million in fiscal 2024.
Plan for Reorganization and Store Closures
As part of its bankruptcy proceedings, American Signature plans to continue liquidating inventory and shutting down underperforming stores. This process, which began in September, aims to stabilize the company’s financial position while pursuing a sale of its remaining assets. The retailer expects to enter into an asset purchase agreement with an entity known as ASI Purchaser, LLC, pending court approval. This bidder is linked to the Schottenstein family, which founded the company in 1948.
In a statement, American Signature reassured customers that both Value City Furniture and American Signature Furniture stores, as well as their websites, remain operational during this transition. The company is committed to fulfilling customer orders and providing service as it navigates through the bankruptcy process.
“We expect the future of our store footprint to be determined by the outcome of the sale process,” the company stated. Specific locations for the upcoming closures have not been fully disclosed, but the retailer’s ongoing restructuring efforts will likely reshape its presence across the country.
American Signature’s situation reflects broader challenges in the retail sector, particularly in the furniture market, which has faced significant headwinds due to changing consumer behaviors and economic pressures. As the company works to stabilize its operations, the impact on employees, customers, and the communities served remains a critical aspect of the unfolding story.
