Furniture Retailer Declares Bankruptcy, Closing Dozens of Stores
A long-established family-owned furniture retailer, American Signature Inc., has filed for bankruptcy protection, citing market challenges. The company, which operates the Value City Furniture and American Signature Furniture chains, announced plans to close over two dozen stores across the United States while reorganizing its debt.
Details of the Bankruptcy Filing
Founded 77 years ago, the Ohio-based retailer is responding to a series of setbacks. According to court documents, the sluggish housing market has contributed significantly to its financial struggles. American Signature stated that it will close a total of 33 stores, which represents about 25% of its retail locations.
Factors Leading to Financial Decline
- Rising operational costs
- Elevated interest rates
- Tariffs imposed during the Trump administration
- Severe declines in the housing market
These factors have resulted in considerable losses for American Signature. The retailer’s sales dropped from $1.1 billion in 2023 to $803 million in 2025. Additionally, the company reported net operating losses of $18 million for the fiscal years 2023 and 2024, escalating to $70 million in 2024 alone.
Inventory Liquidation and Store Closures
The company has initiated an inventory liquidation process and aims to shutter underperforming locations, a strategy first implemented in September. American Signature is also exploring the sale of its remaining businesses and assets. The retailer anticipates entering an asset purchase agreement with ASI Purchaser, LLC, which is associated with the Schottenstein family, the founders of the brand.
Store Locations Targeted for Closure
Selected locations earmarked for closure include:
- Value City Furniture at 2320 Sardis Road North, Charlotte, NC 28227
- American Signature Furniture at 1770 Galleria Blvd, Franklin, TN 37067
- American Signature Furniture at 2130 Gallatin Pike North, Madison, TN 37115
- American Signature Furniture at 2821 Wilma Rudolph Blvd, Clarksville, TN 37040
- American Signature Furniture at 2075 Old Fort Parkway, Murfreesboro, TN 37129
Despite these changes, American Signature has assured customers that all Value City Furniture and American Signature Furniture stores and websites remain operational. They are committed to fulfilling existing orders during this transition period.
The Path Forward
American Signature stresses that the future of its store footprint will depend on the outcome of the ongoing sale process. As the situation evolves, the company’s management remains focused on navigating through this challenging period.
