By Dietrich Knauth
NEW YORK, Nov 24 (Reuters) - Home furniture retailer American Signature Inc filed for bankruptcy in Delaware on Saturday, blaming declining sales and increased costs due to inflation and tariffs.
American Signature plans to keep its stores open for now and offer "deep discounts while merchandise lasts," the company said in a Sunday statement. The company intends to hold a bankruptcy auction for its assets, including store locations and intellectual property, within 45 days.
Based in Columbus, Ohio, American Signature operates more than 120 stores under the Value City Furniture and American Signature Furniture brands in 17 states.
The company owes $117 million to its lenders, and it also has about $236 million in unsecured debts, such as vendor accounts payable, lease obligations and customer deposits, according to its court filings.
American Signature said that its sales had suffered from a broad decline in retail sales since the COVID pandemic, as well as a more recent slump in home furniture demand due to one of the most severe housing market downturns in recent history. At the same time, persistent inflation and new tariffs on furniture imported from Asia have significantly increased the company’s operating costs.
Several home furnishing retailers have filed for bankruptcy in recent years, including Bed Bath & Beyond, Big Lots, At Home Group and The Container Store.
American Signature, which is privately owned by Schottenstein Stores, said in court filings that its overall sales had declined to $803 million in 2025 from $1.1 billion in 2023.
The company had $70 million in losses over the past year, and it entered bankruptcy with just $2 million in cash. The company plans to fund its Chapter 11 case with a $50 million loan from its current lenders.
In the months before filing for bankruptcy, American Signature closed 33 stores. The company said it will stop taking customer returns on December 7.
The case is In re: American Signature Inc, U.S. Bankruptcy Court for the District of Delaware, No. 25-12105
For American Signature: Laura Davis Jones and David Bertenthal of Pachulski Stang Ziehl & Jones LLP
Read more:
US corporate bankruptcies set to hit 15-year high amid credit jitters, S&P data shows
Bankruptcy trends to watch in 2025
Big Lots approved for last-minute sale of 200 to 400 stores
(Reporting by Dietrich Knauth)