Furniture chain sets store closings, liquidation after bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The furniture industry depends heavily on a strong economy and a vibrant housing market. When people are worried about money, they only replace furniture when they truly need to.

Very few people buy a couch they don’t need when they’re worried about rising costs, losing their jobs, and general economic stress. The same logic applies to buying houses.

When the housing market slows, fewer people need new furniture and date shows that the housing market has slowed.

New single‑family home sales dropped sharply: Purchases of new homes slumped 13.7% in May 2025 and were 6.3% lower year‑over‑year, signaling weaker buyer demand, according to The Department of Housing and Urban Development.
Existing home sales down:Zillow reported existing home sales fell 0.5% in April 2025 and were 2% lower than April 2024, showing weakening activity compared to last year.
New listings & pending sales weaker:Redfin data shows new listings fell 1.7% year over year and pending sales down 4.1%, with homes taking longer to go under contract (51 days).
Inventory rising: Active listings and inventory rose compared with prior periods, giving buyers more options and slowing the pace of transactions, according to Compass Blog. In some states, inventory jumped dramatically (e.g., Texas +48%, Florida +27%, Arizona +22%).

When demand falls, it creates a ripple effect across the entire furniture industry.

More Bankruptcy:

“The complex web of furniture manufacturing, logistics, and retail partnerships faces unprecedented challenges as the industry grapples with elevated inventory management costs and shifting consumer demand patterns. Suppliers ranging from fabric manufacturers to logistics providers must now reassess their exposure to retail restructuring risks while maintaining service levels to continuing operations,” Accio reported.

It’s a mix of problems that helped drag American Signature Furniture and its Value City Furniture brand into Chapter 11 bankruptcy.

American Signature Furniture/Value City Furniture Chapter 11 bankruptcy at a glance

Chapter 11 Filing: American Signature, Inc., the parent company of American Signature Furniture and Value City Furniture, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on November 22, 2025. Case #: 25‑12105, according to PacerMonitor.
Court: U.S. Bankruptcy Court for the District of Delaware, overseen by Judge J. Kate Stickles (per PacerMonitor).
Brands Covered: Filing covers American Signature Furniture and Value City Furniture store operations nationwide, according to PacerMonitor.
Reason: The company cited declining sales, macroeconomic headwinds, housing‑market weakness, inflation, and increased operating costs as contributing factors, Retail Dive reported.

The company shared some thoughts on those headwinds.

“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,” American Signature Co-Chief Restructuring Officer Rudy Morando said in a press release.

American Signature/Value City has a plan

Stores and Jobs: The retailer operates about 120 stores across roughly 17 U.S. states with roughly 3,000 employees; it had already begun store closures and liquidation sales at select locations before filing, reported Retail Dive.
Asset Sale Plan: ASI plans to sell substantially all assets via a stalking‑horse/Section 363 sale process; a purchase agreement with “ASI Purchaser LLC” is expected, subject to court approval, according to JD Supra.
Operations During Bankruptcy: Stores and websites are remaining open during the Chapter 11 process and continuing to serve customers while offering discounts, shared Retail & Restaurant Facility Business.
Debtor‑in‑Possession Financing: ASI secured approximately $50 million in DIP financing to support ongoing operations during the bankruptcy process, Retail & Restaurant Facility Business also reported.

Furniture stores have struggled since the Covid pandemic.

Shutterstock

Key dates for American Signature/Value City Furniture customers

The company has not made an overall statement about its store closure plans. That could be because it does not have all the answers yet. There are, however, some key dates customers should be aware of (including one that has passed).

Dec. 7, 2025 – Last day to accept returns/exchanges (expected): Value City Furniture expected to accept returns and exchanges only through Dec .7, 2025. After this date, most sales may be final, WFMJ reported.
Dec. 22, 2025 – Gift cards must be used by this date: Pennsylvania’s Attorney General secured an extension requiring that Value City and American Signature gift cards be used by Dec. 22, 2025. Gift cards will not be accepted at stores that have already begun store‑closing sales, according to a press release.
End of 2025/early 2026 – Store closing sales expected to finish: Some reporting indicates liquidation and store‑closing sales at affected locations are projected to continue through the end of January 2026, but the precise final day depends on inventory and court approval, Fast Company reported.
Proof of claim: The bankruptcy court has not yet set a deadline for filing bankruptcy claims, but customers with issues (e.g., gift card balances) can file proofs of claim through the bankruptcy administrator.

Confirmed Value City Furniturestore closures

Illinois:• Gurnee: 6116 Grand Ave.
Indiana:• Clarksville: 945 E. Lewis & Clark Parkway• Mishawaka: Lithonia location
Kentucky:• Louisville: 9070 Dixie Highway
Maryland:• Rockville: 12055 Rockville Pike
Michigan:• Ann Arbor: 425 E. Eisenhower Parkway• Clinton Township: 33801 S. Gratiot Ave.• Dearborn: 5701 Mercury Drive• New Baltimore: 50400 Gratiot Ave.• Novi: 27775 Novi Road• Portage: Lithonia location
Missouri:• St. Louis: 7077 Chippewa St.
New York:• Amherst: 4220 Maple Road• Cheektowaga: 800 Thruway Plaza Drive
North Carolina:• Charlotte: 2320 Sardis Road North
Virginia:• Richmond: 9110 West Broad Street (Henrico area) closing in early January amid bankruptcy Source: Daily Express US

These are likely not the only American Signature Furniture/Value City Furniture locations closing. The company shows “liquidation sales” on a number of store websites that are not on this list, but those locations may or may not be closing at the end of that process.

“Value City Furniture and American Signature Furniture stores and websites remain open at this time, and we will continue to fulfill customer orders and provide ongoing customer service to the best of our ability through this process,” the company shared in a note to Business Insider.