American Signature, Inc. Voluntarily Files for Chapter 11 Bankruptcy Relief
American Signature, Inc. (ASI), a major player in the home furnishings sector, has voluntarily filed for Chapter 11 bankruptcy relief. The filing took place in the United States Bankruptcy Court for the District of Delaware. This decision follows a strategic evaluation to determine the best path for the company amid ongoing challenges in the home furnishing industry.
Details of the Chapter 11 Bankruptcy Filing
In a bid to maximize value during this process, ASI has initiated a sale process under Section 363 of the U.S. Bankruptcy Code. This will enable a competitive auction of the company’s assets, expected to occur within 45 days. ASI plans to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC, which aims to acquire most of the company’s assets while assuming some liabilities.
Operations During the Bankruptcy Process
Despite the filing, all Value City Furniture and American Signature Furniture stores and online platforms remain operational. The company continues to fulfill customer orders and provide service. Customers can take advantage of discounts on various home furnishing categories, including:
- Living room collections
- Dining room sets
- Bedroom collections
- Decor and lighting
- Mattresses and rugs
Prior to the bankruptcy filing, several stores began clearance sales, offering significant discounts while inventory lasts. A list of store locations is available through the El-Balad Store Locator.
Financial Support and Future Steps
To support its operations during this transition, ASI has secured approximately $50 million in debtor-in-possession financing from Second Avenue Capital Partners LLC. This funding, pending court approval, will assist in maintaining operations and maximizing overall value during the Chapter 11 proceedings.
Additionally, ASI is seeking authorization from the court to continue employee wage payments, uphold various customer programs, and satisfy obligations to vendors. Approval for these requests is anticipated.
Company Background and Future Outlook
Founded in 1948 and headquartered in Columbus, Ohio, American Signature, Inc. is a family-owned retailer operating Value City Furniture and American Signature Furniture across the United States. The company prides itself on providing quality, designer furniture at accessible prices.
Rudy Morando, Co-Chief Restructuring Officer of ASI, expressed gratitude to team members, customers, and partners, emphasizing the commitment to serving them throughout this restructuring phase.
For further inquiries, stakeholders can reach out to ASI’s claims agent, Verita, at (877) 726-6511 for U.S./Canada or +1 (424) 236-7251 for international inquiries. Additional company information is also available on the El-Balad platform.
