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Furniture Giants File Bankruptcy, Stores Closing!
3 Dec
Summary
- American Signature Inc. filed for Chapter 11 bankruptcy protection.
- Value City Furniture and American Signature Furniture stores are impacted.
- Around 31 of 120 company locations are slated for closure.
Furniture retailers are experiencing significant financial difficulties, with American Signature Inc. (ASI) recently filing for Chapter 11 bankruptcy. This filing directly impacts its two well-known chains, Value City Furniture and American Signature Furniture. The company's restructuring plan includes closing about 31 of its 120 existing stores, potentially leaving some markets without any physical presence.
The downturn in furniture sales, exacerbated by a slowdown in the housing market and persistent inflation, has led to ASI's financial struggles. With liabilities estimated between $500 million and $1 billion, even minor sales decreases, such as the reported 0.08% in October 2025, can have a substantial impact.
This situation is not isolated to ASI; other retailers like At Home and Conn's have also shut down stores this year. Consumers are increasingly turning to online marketplaces and second-hand options like Facebook Marketplace due to budget constraints, further challenging traditional furniture retailers.
