It’s been a bad year for retail stores, and it’s not over. Another business just filed for bankruptcy and announced that it’ll be closing stores soon. American Signature, Inc., which owns two furniture store brands, filed for chapter 11 bankruptcy relief early this week, citing several reasons for its debts. Here’s what we know about the filing, including some of the stores that will be closing.
What Is American Signature, Inc.?
American Signature, Inc. is the parent company of Value City Furniture and American Signature Furniture. It’s a 75-year-old company operating about 120 stores and employing about 3,000 people.
It has stores in 17 states. Value City Furniture is located in Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, North Carolina, New York, Ohio, Pennsylvania, and West Virginia. American Signature Furniture has a much smaller footprint, with locations only in Delaware, Georgia, Florida, and Tennessee. Both stores sell living room, dining room, and bedroom furniture and mattresses.
Why Did the Company File for Bankruptcy?
In the bankruptcy filing, American Signature cited “one of the most severe housing market declines in recent history” as a primary factor in its debt. That downturn came on the heels of massive growth during the COVID-19 pandemic, when people were investing more in their homes.
The company goes on to blame other factors for its predicament, including “macroeconomic factors and heightened cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and a post-pandemic slowdown in consumer demand for furniture.”
Net sales for the company dropped by almost $150 million from 2024 to 2025.
Which Stores Will Be Closing?
American Signature is seeking a buyer for the company. In the meantime, it has secured $50 million in debt financing to continue operating most stores and their websites.
In the filing, the company revealed it would close 33 stores. Those stores will start liquidation sales immediately and should be over by the end of January 2026.
Unfortunately, the company did not release a list of locations that will be closing. However, Fast Company has confirmed five locations that will be closing and have started liquidation sales:
- Value City Furniture: 2320 Sardis Road North, Charlotte, North Carolina
- American Signature Furniture: 1770 Galleria Blvd, Franklin, Tennessee
- American Signature Furniture: 2130 Gallatin Pike North, Madison, Tennessee
- American Signature Furniture: 2821 Wilma Rudolph Blvd, Clarksville, Tennessee
- American Signature Furniture: 2075 Old Fort Parkway, Murfreesboro, Tennessee
More Retail News From Cheapism
- Carter’s Closing 150 Stores and Laying Off 300, Citing Tariffs — Popular children’s clothing retailer Carter’s is planning to close stores nationwide, citing tariffs as a major factor in the decision.
- Big-Name Stores That Have Closed in the Last 30 Years — While the pandemic and the current economic situation have caused many businesses to shutter, we’ve also lost plenty of other iconic stores in recent decades. Here’s a look back at some of the most popular stores we’ve lost.
- Orvis to Close More Than 30 Stores Nationwide by 2026 — The outdoor retailer cites recent tariffs as the driving force behind the upcoming store closures.
