American Signature, the parent company of American Signature Furniture and Value City Furniture, filed for Chapter 11 bankruptcy protection on November 22, 2025, due to significant financial challenges, including a sharp decline in demand. According to court filings, the company holds assets valued between $100 million and $500 million, but its liabilities range from $500 million to $1 billion, indicating substantial liquidity issues.
Despite the bankruptcy filing, the company announced that it would continue to operate its stores and e-commerce platforms while seeking a potential buyer through a competitive auction process. American Signature has indicated it plans to sell most of its assets to ASI Purchaser LLC, pending court approval. However, there have been complaints from customers regarding unfulfilled orders. Some individuals, such as Lori Hanson, reported that their products, including a couch purchased in September, were not delivered, and the company denied refunds or store credits.
Customers affected by this situation may find their avenues limited. Experts suggest filing disputes through credit card companies for unfulfilled orders, as recovery via bankruptcy claims can be uncertain. Bankruptcy courts prioritize claims from secured creditors, potentially leaving customers as last in line for any payments.
While liquidation and discount sales are underway at numerous identified store locations, the company has begun closing about 33 stores and the headquarters in Columbus, Ohio. The layoffs affecting hundreds of employees add further strain to the company’s ongoing operations.
Key Points:
- Why this story matters: The bankruptcy highlights the precarious state of some retailers in today’s economic climate, affecting consumers, employees, and local economies.
- Key takeaway: Customers are urged to act quickly in securing refunds or filing claims, as their recovery from unfulfilled orders hinges on the company’s financial situation and court proceedings.
- Opposing viewpoint: Some may contend that bankruptcy allows a business to restructure and continue operations, potentially safeguarding jobs and serving customers during the process.
