All NewsNovember 23, 2025

77-year-old furniture chain files for Chapter 11 bankruptcy

  • Residential real estate downturns have led to financial distress and decreased sales for furniture retailers.
  • Multiple furniture chains filed for Chapter 11 bankruptcy in 2025.
  • Furniture chains close stores and downsize before seeking bankruptcy reorganization and asset sales.

Downturns in the residential real estate market are often followed by distress in the furniture retail sector.

Whenever homebuyers purchase a new home, it’s common for them to buy new furniture and toss out their old furnishings.

But when houses aren’t selling, neither is furniture.

An increase in mortgage rates and rising real estate values has led to a slowdown in the residential real estate market since the Covid-19 pandemic, which affected sales in the furniture sector. Rising labor and product costs driven by inflation, increased tariff levies, and lingering effects from the pandemic compounded furniture retailers’ financial distress.

Furniture sales declined in October 2025

Furniture store revenue suffered recently, as sales in October 2025 declined 1.7% unadjusted compared to October 2024 and were down 0.8% seasonally adjusted from September 2025, the National Retail Federation reported on Nov. 10, according to Home News Now.

Several furniture chains couldn’t handle the economic fallout this year and filed for bankruptcy protection, including Texas furniture and mattress chain Landmark Furniture, whose parent Brenmark Inc. filed its Chapter 11 petition on Nov. 9; Walker Edison Furniture Company, which filed Chapter 11 on Aug. 28, 2025; American Mattress, which filed Chapter 11 on July 6, 2025; and 5th Avenue Furniture, which filed Chapter 11 on June 6, 2025.

Furniture chain American Signature Inc. files for Chapter 11 bankruptcy.

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American Signature files for bankruptcy protection

And now, iconic furniture retailer American Signature Inc., which is the parent company of the American Signature Furniture and Value City Furniture chains, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business and sell its assets to a stalking-horse bidder, after closing several of its stores.

The Columbus, Ohio-based furniture retailer and eight affiliates filed their petition in the U.S. Bankruptcy Court for the District of Delaware on Nov. 22, listing $100 million to $500 million in assets and $500 million to $1 billion in liabilities.

More bankruptcy:

The 77-year-old furniture chain operator’s largest unsecured creditors include Man Wah Group, owed over $14.5 million; Targetcast LLC, owed over $12.5 million; H317 Logistics LLC, owed over $4.9 million; Riverside Furniture Corp., owed over $3.9 million; and Dickson Furniture International, owed over $3.9 million, the petition said.

Other unsecured creditors include Holland House, owed over $3.1 million; Najarian Furniture Co. Inc., owed over $3 million; Magnussen Home Furnishings, owed over $2.9 million; Happy Furniture (Vietnam) Co. Ltd., owed over $2.3 million; and Everest Technologies Inc., owed over $2.1 million.

American Signature’s largest unsecured creditors

  • Man Wah Group, owed over $14.5 million
  • Targetcast LLC, owed over $12.5 million
  • H317 Logistics LLC, owed over $4.9 million
  • Riverside Furniture Corp., owed over $3.9 million
  • Dickson Furniture International, owed over $3.9 million
  • Holland House, owed over $3.1 million
  • Najarian Furniture Co. Inc., owed over $3 million
  • Magnussen Home Furnishings, owed over $2.9 million
  • Happy Furniture (Vietnam) Co. Ltd., owed over $2.3 million
  • Everest Technologies Inc., owed over $2.1 million.

The debtor, which was founded in 1948, plans to seek bankruptcy court approval for new money debtor-in-possession financing and use of its cash collateral to fund the company’s operations during its bankruptcy case, according to its petition.

American Signature, which operated about 120 stores across the U.S. with 3,200 employees, has been closing store locations to realign its market presence, the company said in an October statement.

American Signature closes store locations

The furniture retailer exited the Nashville, Tenn., market in October with the closing of stores in Clarksville, Franklin, Madison, and Murfreesboro, Tenn.

“This is a strategic business decision focused on our long-term growth priorities,” American Signature Furniture COO Pat Sanderson said in a statement. “While we’re sad to say goodbye to Nashville, we’re incredibly grateful to our customers here who’ve welcomed us into their homes over the years.”

American Signature continued its downsizing in November with the closing of three stores in Novi, Ann Arbor, and Lansing, Mich., WHMI-93.5 FM Radio reported. The furniture chain is also closing stores in Pennsylvania and Florida.

2025 furniture chain bankruptcies

  • 5th Avenue Furniture, Chapter 11, June 6, 2025
  • American Mattress, Chapter 11, July 6, 2025
  • Walker Edison Furniture Company, Chapter 11, Aug. 28, 2025
  • Landmark Furniture, Chapter 11, Nov. 9, 2025
  • American Signature Inc., Chapter 11, Nov. 22, 2025.

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