American Signature, Value City Furniture Parent Files Chapter 11: Store Closures, WARN Layoffs and Holiday Sales Explained (Nov. 24, 2025)

Published: November 24, 2025

American Signature, Inc. — the Columbus-based, family-owned parent company of Value City Furniture and American Signature Furniture — has entered Chapter 11 bankruptcy protection, marking one of the biggest collapses in the U.S. furniture sector this year.

As of Monday, November 24, 2025, new details are emerging about the retailer’s court-supervised sale process, WARN layoff notices, creditor list and what all of this means for shoppers heading into the holiday season.

What happened: American Signature files for Chapter 11 in Delaware

American Signature announced that it has filed voluntary petitions for Chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware. The case is being jointly administered under Case No. 25‑12105, according to the company’s court-appointed claims agent. ^[1]

In its official press release, the company said it has:

Started a sale process under Section 363 of the U.S. Bankruptcy Code, aiming for a competitive auction within roughly 45 days to maximize value for stakeholders. ^[2]
Agreed to a stalking-horse asset purchase agreement in principle with ASI Purchaser LLC, which would acquire substantially all of American Signature’s assets and assume certain related liabilities, subject to court approval. ^[3]
Secured about $50 million in debtor‑in‑possession (DIP) financing from Second Avenue Capital Partners to fund ongoing operations during the Chapter 11 process. ^[4]

In other words, this is a restructuring and potential sale, not an immediate liquidation. The company is seeking a buyer that can keep the business — or parts of it — operating.

Stores are still open — and running major Black Friday and holiday sales

Despite the Chapter 11 filing, Value City Furniture and American Signature Furniture stores and websites remain open and are continuing to fulfill customer orders “to the best of [the company’s] ability” during the court process, according to the company. ^[5]

Key points for shoppers today:

Stores and e‑commerce sites are still trading.
The company is actively promoting deep Black Friday and holiday discounts on living room, dining, bedroom, décor, lighting, mattresses and rugs. ^[6]
Some locations are running store‑closing sales with steep markdowns while inventory lasts, especially in markets the company had already planned to exit. ^[7]

Tabloid and consumer outlets have highlighted that shoppers can still score large discounts even as the 77‑year‑old chain navigates bankruptcy — a contrast to Chapter 7 liquidations, where operations typically wind down quickly. ^[8]

How big is American Signature?

American Signature is one of the largest furniture retailers in the U.S.

It is headquartered in Columbus, Ohio and has been family‑owned since its founding in 1948 — making it roughly a 77‑year‑old company. ^[9]
The retailer owns and operates the Value City Furniture and American Signature Furniture brands, with around 120–125 stores across 17–18 states, plus several distribution centers and domestic manufacturing facilities. ^[10]
In Furniture Today’s 2025 Top 100 ranking, American Signature placed No. 15, reporting about $1.068 billion in 2024 sales across 125 storefronts. ^[11]

In its bankruptcy paperwork, the company reported estimated assets of $100 million to $500 million and estimated liabilities between $500 million and $1 billion, with an estimated 1,000–5,000 creditors. ^[12]

New today (Nov. 24, 2025): What’s changed in the last 24–48 hours

Several major developments have surfaced or been amplified as of Monday, November 24:

1. Trade press confirms sale strategy and store footprint

A new report from Inside Retail US summarizes that American Signature is using Chapter 11 to run a sale process, aiming for a competitive auction and confirming plans for a stalking-horse deal with ASI Purchaser LLC. The article also reiterates that the business operates about 120 stores across 18 states, plus four distribution centers and three manufacturing facilities, and that those locations remain open for now. ^[13]

2. Furniture Today details WARN notices and headquarters closure

Furniture Today reports that the company:

Filed for Chapter 11 on November 22 in the Delaware bankruptcy court.
Has begun issuing WARN Act notices to employees.
Plans to close its offices at 4300 East Fifth Ave. in Columbus, Ohio, citing “significant decline in sales,” liquidity challenges and the anticipated Chapter 11 filing.
Indicates in the WARN notice that layoffs are currently scheduled around January 20, 2026 (or within a 14‑day window beginning on that date). ^[14]

This means corporate staff in Columbus are facing a significant job hit early next year, even as stores continue to operate under Chapter 11.

3. Top 30 unsecured creditors: more than $80 million owed

In a separate article, Furniture Today dug into the bankruptcy schedules and found that American Signature’s top 30 unsecured creditors are owed about $80.25 million in total. ^[15]

Those creditors include:

Major furniture manufacturers and import partners
Logistics and shipping providers
Marketing and technology vendors

For example, the largest unsecured claim is from Man Wah MCO (a major furniture supplier), owed roughly $14.6 million, while an advertising agency, logistics providers, mattress brands and shipping companies all appear on the list with seven‑figure claims. ^[16]

This creditor mix underlines how deeply the bankruptcy ripples through the wider furniture and logistics ecosystem.

4. Consumer and legal analysis focuses on customer deposits

A fresh explainer from Bankruptcy.Blog — authored by a consumer‑bankruptcy professor — notes that American Signature’s case is proceeding as a Section 363 sale and outlines what that can mean for customers who paid deposits or in full for undelivered furniture. ^[17]

The blog stresses that:

Undelivered orders are often treated as “executory contracts” in Chapter 11.
The company can seek court permission to assume (honor) or reject (cancel) those contracts.
U.S. law gives individual consumers priority status for certain deposits up to a capped amount (currently $3,800), but amounts above that typically become general unsecured claims, which may recover only a fraction of their value. ^[18]

While the article offers general education rather than personalized legal advice, it highlights that customers with large deposits should stay closely informed about the case.

How did we get here? Store closings and “strategic exits” before Chapter 11

The Chapter 11 filing didn’t arrive out of the blue. For months, American Signature had been quietly shrinking its footprint:

In October 2025, the company exited the Nashville, Tennessee market, closing four area stores. Management described this as a “strategic business decision” to refocus on top‑performing regions. ^[19]
In Michigan, at least three Value City Furniture stores — including locations in Novi, Ann Arbor and Lansing — began liquidation sales, with employees telling local media that their stores are closing for good. ^[20]
Tabloid coverage and radio reports noted steep markdowns on merchandise, sometimes up to 50% off in closing locations. ^[21]

Those moves now look like the early stages of a broader restructuring, which culminated in the November 22 Chapter 11 filing and current sale process.

Why American Signature says it filed: industry headwinds and macro pressures

In both its press release and comments quoted in trade coverage, American Signature’s co‑chief restructuring officer, Rudy Morando, points to several pressures driving the filing: ^[22]

Macroeconomic headwinds: Slower discretionary spending, with consumers delaying costly home‑furnishing purchases.
Industry‑wide challenges: Competition, promotional intensity and margin pressure across the furniture retail sector.
Tariff and supply‑chain pressures: Legal and academic commentators emphasize that tariffs on imported furniture and logistics disruptions have raised costs for retailers, forcing them either to absorb the hit or pass it on to price‑sensitive consumers. ^[23]

TheStreet’s coverage places American Signature’s filing in the context of other furniture bankruptcies in 2025, including Walker Edison Furniture Company (filed August 28, 2025) and Landmark Furniture (filed November 9, 2025), underscoring a broader shake‑out in the category. ^[24]

What Chapter 11 means for American Signature, Value City Furniture and American Signature Furniture

For now, Chapter 11 does not mean the immediate disappearance of the brands. Instead, it means:

Court supervision and protection from most creditor actions while the company restructures or sells its assets.
A Section 363 sale process, in which bidders can compete to acquire stores, inventory, intellectual property and other assets, often with a stalking‑horse bidder setting the floor price. ^[25]
A chance — though not a guarantee — to keep parts of the business operating under new ownership.

American Signature has asked the court for permission to:

Continue paying employee wages and benefits
Maintain customer programs, such as certain warranties or promotions
Pay post‑petition obligations to vendors and partners

The company expects these requests to be approved, which would help stabilize operations during the critical holiday selling period. ^[26]

Impact on employees: WARN notices and a 2026 layoff timeline

The WARN Act notices reported by Furniture Today are among the most sobering pieces of news for workers: ^[27]

The company plans to close its Columbus headquarters at 4300 East Fifth Avenue.
Layoffs are scheduled to begin around January 20, 2026, within a 14‑day window.
The notice cites significant declines in sales and liquidity challenges — conditions that predated and contributed to the Chapter 11 filing.

The retailer also notes that it has already closed or is closing several stores in markets like Nashville and parts of Michigan, suggesting that field‑level roles in those regions are also at risk or already eliminated. ^[28]

Impact on suppliers and creditors: $80.25 million just among the top 30

The creditor list gives a sense of how far‑reaching the bankruptcy is:

American Signature’s top 30 unsecured creditors are owed a combined $80.25 million, according to court filings reported by Furniture Today. ^[29]
The group includes major furniture vendors, mattress manufacturers, technology providers, logistics companies and shipping carriers, indicating that the company’s financial stress has implications across factory floors, trucking fleets and marketing agencies alike.

While secured lenders and DIP financiers typically sit at the front of the repayment line, unsecured trade creditors may face significant haircuts on what they’re owed, depending on the outcome of the sale process and court decisions.

What this means for customers: orders, deposits and gift cards

If you’re a Value City Furniture or American Signature Furniture customer, here’s the high‑level picture based on today’s information:

Stores and websites are open and fulfilling orders
- The company explicitly says it intends to keep fulfilling customer orders and providing service “to the best of its ability” throughout the court process. ^[30]
Some locations are closing and liquidating
- In markets like Nashville and several Michigan cities, stores are running closing‑down sales and will shut once inventory is sold through. ^[31]
Prepaid but undelivered orders may be affected later in the case
- Legal analysis notes that undelivered purchases are typically treated as executory contracts, which the company can seek to assume (honor) or reject (cancel) with court approval.
- U.S. bankruptcy law gives priority status to certain consumer deposits up to a dollar cap, but money above that threshold can become a general unsecured claim, which may recover only partially. ^[32]
If you have a large deposit or gift card, staying informed is crucial
- Experts recommend closely monitoring the official case website and court notices. Customers may also seek independent legal or financial advice tailored to their situation, particularly for high‑value orders or large gift‑card balances. ^[33]

Because this is an ongoing legal process, no outcome is guaranteed. For now, though, the company’s stated plan is to keep trading through the holiday season while the sale process runs in the background.

The bigger picture: furniture retail in a tough economy

American Signature’s Chapter 11 filing is part of a wider wave of distress in furniture and home‑goods retail:

Several other furniture players, including Walker Edison Furniture Company and Landmark Furniture, have also sought Chapter 11 protection in 2025. ^[34]
Analysts point to weak consumer confidence, higher interest rates that make big‑ticket purchases easier to postpone, and tariff and shipping cost pressures as key drivers. ^[35]

For now, American Signature is trying to navigate those headwinds with a combination of DIP financing, aggressive holiday promotions, store rationalization and a structured sale process.

Key takeaways for November 24, 2025

American Signature, Inc., parent of Value City Furniture and American Signature Furniture, is in Chapter 11 in Delaware and running a Section 363 sale process with a stalking‑horse bidder lined up. ^[36]
Stores and websites remain open, and holiday/Black Friday promotions are in full swing, though some locations are holding closing‑down sales. ^[37]
The company has about $100–500 million in assets and $500 million–1 billion in liabilities, with more than $80 million owed just to its top 30 unsecured creditors. ^[38]
WARN notices show that the Columbus headquarters will close and layoffs are expected around January 20, 2026. ^[39]
Customers with open orders, deposits or gift cards should keep a close eye on official communications as the case progresses, as some contracts could eventually be adjusted through the court process. ^[40]

This is a developing story; as the auction process unfolds and the court weighs key motions, the future of one of America’s largest furniture chains — and the brands many households know from their living rooms — will become clearer.

Furniture Retail Upheaval: Bankruptcies, Layoffs, and Growth