Long-established Family Furniture Store Faces Bankruptcy, Plans Nationwide Closures

American Signature Inc., a prominent name in the furniture retail industry with a rich history spanning over 77 years, has sought protection under Chapter 11 bankruptcy. The company attributes part of its financial struggles to an adverse housing market.

Acting as the parent company for both Value City Furniture and American Signature Furniture, the Ohio-based firm aims to reduce its footprint by closing more than 25 stores as it navigates reorganizing its financial obligations.

Previously disclosed plans to shut down stores, particularly in Tennessee, have been expanded to 33 locations, accounting for about a quarter of American Signature's branches. Currently, the retailer operates over 120 outlets across 17 U.S. states, employing around 3,000 individuals.

Legal documents highlight multiple challenges that have contributed to the company’s financial predicament, such as escalating costs, increased interest rates, and tariffs implemented during the Trump administration. Furthermore, the company points to what it describes as one of the sharpest declines in the housing market in recent memory.

A recent analysis by Redfin, shared by Business Insider, indicates a significant downturn in housing turnover rates — a trend that affects the frequency of home sales — reaching unprecedented lows over the past several decades, primarily due to rising interest rates.

The economic downturn has greatly impacted American Signature’s revenue, leading to considerable losses due to reduced sales. The company disclosed that its revenue in 2025 dropped to $803 million from $1.1 billion in 2023.

The financial losses reported by the company reached $18 million in the fiscal years 2023 and 2024, climbing to $70 million in fiscal 2024, as per court documentation.

As part of its strategy, the retailer has been progressively liquidating its stock and shutting down underperforming locations since September while simultaneously working towards a sale of its remaining assets.

Court submissions reveal the firm's intentions to engage in an asset purchase agreement with an entity known as ASI Purchaser, LLC, assuming it gains judicial approval. This potential buyer, along with its backer, traces connections to the Schottenstein family, the original founders of American Signature in 1948.

In a statement provided to Business Insider, officials from American Signature emphasized that stores and online platforms for Value City Furniture and American Signature Furniture will stay operational for the time being, with a commitment to fulfilling current orders and preserving customer service standards.

The company anticipates that the fate of its physical store presence will be largely influenced by the results of the ongoing sale process.

Specific store locations expected to cease operations early next year have been identified in court papers, including the following:

Value City Furniture at 2320 Sardis Road North, Charlotte, NC 28227

American Signature Furniture at 1770 Galleria Blvd, Franklin, TN 37067

American Signature Furniture at 2130 Gallatin Pike North, Madison, TN 37115

American Signature Furniture at 2821 Wilma Rudolph Blvd, Clarksville, TN 37040

American Signature Furniture at 2075 Old Fort Parkway, Murfreesboro, TN 37129