All 89 stores closing as 78-year-old furniture chain liquidates

When you buy something from a chain that has filed for Chapter 11 bankruptcy, it's important to take possession of that item before handing over any cash.

When Badcock Furniture filed for Chapter 11 bankruptcy, my wife and I went to look at couches and found one we liked. They would not, however, sell us the floor sample and either ship it immediately from that store or let us pick it up.

Instead, they wanted us to pay for the item, which they would ship from a central warehouse. We balked at that, because in my 30 years of covering retail, I've seen way too many people not get items they paid for after a bankruptcy filing.

That has been happening with American Signature Furniture/Value City Furniture customers, I reported Jan. 9. Customers have been reporting that they have not received the merchandise they have paid for, nor have they received refunds.

Now, the chain has shared in a press release and on its website that all stores are closing.

American Signature Furniture/Value City Furniture closing all locations

When Value City Furniture's parent company, American Signature Furniture, filed for Chapter 11 bankruptcy in November, it intended to reorganize, according to documents filed on PacerMonitor.

“In order to maximize value, the company has commenced a sale process pursuant to Section 363 of the U.S. Bankruptcy Code in the hope of a competitive auction within approximately 45 days to elicit higher value for the benefit of all stakeholders. ASI expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC under which, subject to court approval, ASI Purchaser LLC will acquire substantially all of the company’s assets and assume certain related liabilities,” it shared in a press release.

That process has culminated in the decision to close all locations after going-out-of-business sales. That news greeted visitors to the chain's website on Jan. 10.

"Closing Sales Now Underway at All American Signature Furniture and Value City Furniture Locations," the company shared.

It shared some color as to what happened during the bankruptcy process.

"In November 2025, American Signature Inc. began a court-supervised process to facilitate a sale. As a result of this process, American Signature Inc. is winding down operations and closing all remaining American Signature Furniture and Value City Furniture locations. Closing sales will continue while inventory lasts," it added.

Outside analyst sees the same problems the chain cited

"Since the end of the COVID boom, the combination of high interest rates and inflation have worked concurrently to stifle the housing market and limit consumers’ disposable income levels. Then, those issues were further compounded this year by rising costs on imports due to round after round of tariffs," Furniture Today reported.

Value City Furniture and American Signature Furniture answer key questions:

The company shared an FAQ on its website that answers some key questions:

• As part of the outcome of our sale process, all VCF and ASF retail stores will be permanently closing.
• Customers can visit our remaining locations and take advantage of store closing sales while inventory lasts.
• All sales are final at all locations.

The company hopes to ship all orders and indicates the following.

• We are doing our best to fulfill customer orders for products that are currently in stock.
• You can track your order statushere.
• If we are unable to fulfill an order that a customer placed a deposit for, they may be able to file a claim. Additional information on how to file a claim is available here.

Gordon Brothers handling going-out-of-business sales

A joint venture of SB360 Capital Partners, Hilco Global, and Gordon Brothers has received bankruptcy court approval to operate going-out-of-business sales at all 89 remaining American Signature Inc. stores. ASI is one of the nation's leading home furnishings retailers and is the parent company of Value City Furniture.

The going-out-of-business sales start Jan. 10 in Value City Furniture's 79 stores across 13 states, and American Signature's 10 stores located in Delaware and Florida. Shoppers will find discounts of up to 50% off original prices on a wide selection of home furnishings, including living room, dining room, and bedroom collections, as well as decor, lighting, mattresses, and rugs.

"A sale of this magnitude will bring never-before-seen values to a broad selection of top-quality furniture already offered at truly affordable prices," said SB360 President Aaron Miller, in a press release on behalf of the joint venture. "We encourage everyone to shop early during this limited-time event while selection is at its best. The compelling liquidation discounts on stylish furniture for every room of the home will make this a short sale in these stores."

American Signature blames housing crisis

American Signature blamed its Chapter 11 bankruptcy filing on "one of the most severe housing market declines in recent history,” according to a bankruptcy declaration from co-Chief Restructuring Officer Rudolph Morando.

“Although the company experienced a period of opportunistic growth during Covid, like many peers in the industry, it has since faced significantly decreased sales volume over the past year, resulting from one of the most severe housing market declines in recent history, alongside other macroeconomic factors and heightened cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and a post-pandemic slowdown in consumer demand for furniture,” Morando said in the declaration.

The housing crisis is a real thing.

Main drivers of the 2025 housing crisis

• High mortgage interest rates reduced affordability: Mortgage rates stayed elevated (often above 6 %) throughout 2025, making monthly payments much pricier and pricing many buyers out of the market, according to Fannie Mae.
• Home prices remained prohibitively high relative to incomes: Even as price growth cooled, median home prices stayed at record levels, far above historical norms, relative to household income, reported the Joint Center for the Nation's Housing.
• Affordability crisis deepened: A Harvard report found a record share of households spending more than 30 % of income on housing (rent or mortgage), contributing to declining homeownership and rising cost burden, according to a Harvard University report.
• “Lock‑in effect” limited supply: Many current homeowners held on to low‑rate mortgages instead of selling, shrinking available inventory and keeping the market tight even as demand slowed, shared Financial Content.
• Inventory and supply imbalances: Active inventory rose modestly in 2025, but it wasn’t enough to fix long‑standing supply shortages, especially of affordable starter homes, in many markets, according to Housing Wire.

Related: Customers left hanging after furniture chain bankruptcy