COLUMBUS, Ohio — Top 100 retailer American Signature Inc. filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on Nov. 22 and has begun issuing WARN notifications to employees, Furniture Today has learned.
In the voluntary filing, the Columbus, Ohio-based retailer, which owns and operates American Signature Furniture and Value City Furniture, reported estimated assets of $100,000,001 to $500 million versus estimated liabilities of $500,000,001 to $1 billion to an estimated 1,000 to 5,000 creditors. As part of the proceedings, ASI expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC, under which, subject to court approval, ASI Purchaser LLC will acquire substantially all of the company’s assets and assume certain related liabilities.
“For nearly 75 years, American Signature has served as a family-owned furniture destination that communities could rely on to provide style, quality, and value,” said Rudy Morando, co-chief restructuring officer for ASI. “In the face of the ongoing macroeconomic headwinds that have impacted the entire home furnishing industry, the company has carefully evaluated its options to assess the best path forward in the current operating environment. Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value. We deeply appreciate our team members, customers, and partners and are determined to serve them throughout this process.”
ASI has secured approximately $50 million in debtor-in-possession financing from Second Avenue Capital Partners LLC. Subject to Court approval, this financing will support certain operations and the company’s efforts to maximize value through the Chapter 11 cases and sale process. Additionally, ASI is filing a number of customary motions seeking, among other things, authorization to continue payment of employee wages and benefits, maintain certain customer programs, and satisfy post-petition obligations to vendors and partners. The company expects to receive court approval for these requests.
A copy of the Nov. 21 WARN notification obtained by Furniture Today, noted that the retailer will be closing its offices at 4300 East Fifth Ave. in Columbus, Ohio, due to “significant decline in sales, resulting liquidity challenges and the Company’s anticipated Chapter 11 bankruptcy filing.”
In the notice, the company indicated that layoffs are currently scheduled to take place Jan. 20, 2026, or within the 14-day period beginning on that date.
The retailer has recently closed or is in the process of closing several stores. Earlier this month, it was reported that three Value City Furniture stores in Michigan are undergoing liquidation sales, and in October, it was reported that the retailer is exiting the Nashville, Tenn., market to “realign its market presence and strengthen operations in top-performing regions.”
American Signature Inc. ranked No. 15 in Furniture Today’s 2025 Top 100 with $1.068 billion in sales across 125 storefronts in 2024.
Thomas Lester //Retail Editor//November 23, 2025
Source: https://www.furnituretoday.com/financial/american-signature-sends-warn-notices-chapter-11-filing-anticipated/
