American Signature, Inc. Files for Chapter 11 and Initiates Sale Process
Furniture World News Desk on
11/25/2025
COLUMBUS, Ohio – American Signature, Inc., parent company of Value City Furniture and American Signature Furniture, announced it has filed voluntary petitions for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. The filing initiates a court-supervised sale process aimed at identifying a buyer and maximizing value for stakeholders.
As part of the restructuring, ASI has commenced a sale process under Section 363 of the U.S. Bankruptcy Code, seeking to conduct a competitive auction within approximately 45 days. The Company expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC, which, subject to court approval, would acquire substantially all of the Company’s assets and assume certain related liabilities.
Value City Furniture and American Signature Furniture stores and websites remain open and continue to fulfill customer orders and provide service during the restructuring process. Select locations have begun store closing sales offering discounts while inventory lasts. Store locations can be found through the company’s online Store Locator.
“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.”
According to bankruptcy filings, the company’s top 30 unsecured creditors are reportedly owed more than $80 million.
Financing and Operations
ASI has obtained approximately $50 million in debtor-in-possession (“DIP”) financing from Second Avenue Capital Partners LLC, subject to court approval. This financing is intended to support ongoing operations and the sale process. The Company has also filed customary motions seeking authorization to continue paying employee wages and benefits, maintain customer programs, and fulfill post-petition vendor obligations.
Additional information regarding the court proceedings is available at www.veritaglobal.net/americansignature. Stakeholders may contact the Company’s claims agent, Verita, by phone at (877) 726-6511 (U.S./Canada) or +1 (424) 236-7251 (International), or by email via the inquiry form on the Verita website.
Advisors
ASI is advised by Pachulski Stang Ziehl & Jones LLP as legal counsel, BRG as financial advisor, and SSG Capital Advisors as investment banker. SB360 Capital Partners is assisting with inventory sales, and C Street Advisory Group is providing strategic communications support. Reflect Advisors has been appointed as Independent Director, with Goodwin Procter LLP serving as legal counsel to the Independent Director.
About American Signature, Inc.
Founded in 1948, American Signature, Inc. is a family-owned and operated furniture retailer based in Columbus, Ohio. It is the parent company of Value City Furniture and American Signature Furniture, with stores across the United States. The company designs and sells a range of furniture and home décor for living, dining, and bedroom spaces. For more information, visit www.americansignaturefurniture.com.