Daily News
From Home Furnishing Business
American Signature, Inc. Files for Chapter 11 Relief
November 24,
2025 by HFBusiness Staff in Business Strategy, Industry 
American Signature, Inc., one of the nation's leading home furnishings retailers and the parent company of Value City Furniture and American Signature Furniture, announced it has filed voluntary petitions for chapter 11 relief in the United States Bankruptcy Court for the District of Delaware.
In order to maximize value, the Company has commenced a sale process pursuant to Section 363 of the U.S. Bankruptcy Code in the hope of a competitive auction within approximately 45 days to elicit higher value for the benefit of all stakeholders. 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.
Value City Furniture and American Signature Furniture stores and websites remain open at this time and will continue to fulfill customer orders and provide ongoing customer service to the best of its ability throughout the court-supervised process. Customers can benefit from discounts on a wide selection of home furnishings including living room, dining room, and bedroom collections in addition to decor, lighting, mattresses, and rugs for the holidays.
Prior to the chapter 11 filing, certain Value City Furniture and American Signature Furniture stores commenced store closing sales and are offering deep discounts while merchandise lasts. A complete list of Value City Furniture and American Signature Furniture locations can be found at the 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.”
Additional Information about the Court-Supervised 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.