Schottenstein-Founded Chain Files Bankruptcy, Cuts 256 Ohio Jobs Amid Economic Struggles

American Signature Inc., also known as Value City Furniture in Central Ohio, has filed for Chapter 11 bankruptcy. The filing took place in Delaware as the company faces significant economic challenges affecting the home furnishings sector.

Job Losses and Store Closures

As a result of this bankruptcy, the company announced the termination of 256 jobs in Ohio. The WARN notice revealed that a total of 326 positions will be eliminated starting January 20. Moreover, the company will close its offices located at 4300 East Fifth Ave. in Columbus, citing a significant drop in sales.

Financial Overview

American Signature Inc. reported assets ranging from $100 million to $500 million. In contrast, its liabilities are estimated between $500 million and $1 billion, affecting around 1,000 to 5,000 creditors. This financial state reflects the struggles faced by the retailer, which previously achieved over $1 billion in sales in 2024.

Company History

The Schottenstein Family originally founded the company after World War II. E.L. Schottenstein began its furniture division, which was eventually renamed Value City Furniture. Alvin Schottenstein succeeded in leadership in 1948, followed by Jay Schottenstein in 1984.

Currently, Jonathan Schottenstein leads the company, emphasizing value through a mix of style, quality, and affordability. The company has recently faced closure of several stores, with three in Michigan and four in Nashville shutting down.

Status of Central Ohio Stores

While there are five Value City Furniture locations in Central Ohio, their future remains uncertain amid these changes and economic pressures.