Value City Furniture’s parent company, American Signature Inc., has filed for Chapter 11 bankruptcy and plans to close many stores across the country.
The filing is intended to help the company restructure and continue operating while addressing its debts, according to a Sunday press release.
American Signature, which previously announced the closure of four stores in Tennessee, now plans to close or liquidate dozens more locations.
Court filings show the Columbus-based company has over 1,000 creditors, more than $100 million in assets, and over $500 million in liabilities, according to documents obtained by USA Today.
“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,” Rudy Morando, Co-Chief Restructuring Officer for ASI, said in a statement.
“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.”
Morando concluded, “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 has begun store-closing sales with steep discounts while inventory lasts.
Despite the closures, the company says Value City Furniture and American Signature Furniture stores and websites will remain open for now during the filing process, even hosting a Black Friday sale.
The company, which had more than 120 stores nationwide, announced in October that four Tennessee locations would close.
Those stores, along with others, including one in Alpharetta, Georgia, are now offering 20 percent to 40 percent off select items and holding total inventory blowout sales.
According to American Signature’s website, the stores scheduled to close or hold total inventory blowout sales are as follows:
Georgia:
Illinois:
Indiana:
Kentucky:
Maryland:
Michigan:
Missouri:
New York:
North Carolina:
Ohio:
Pennsylvania:
Tennessee:
Virginia:
