In a dramatic turn for one of America’s well-known home-furnishing chains, American Signature filed for Chapter 11 protection in Delaware on Saturday, unveiling a sweeping plan to shutter dozens of stores and auction off the remaining business to affiliates of its existing owners.
Sales Collapse and Economic Pressures Push Retailer to the Brink
Court filings paint the picture of a retailer that soared during the early pandemic furniture boom, only to fall sharply as the market cooled. Co-Chief Restructuring Officer Rudolph Morando said in a first-day declaration that American Signature’s revenue “fell off a cliff” in the years following COVID-19’s initial surge in home-improvement spending.
But the downturn didn’t stop there. A sluggish housing market, soaring interest rates, tariffs, and persistent inflation layered additional strain onto the company’s balance sheet, ultimately leaving it unable to meet its obligations—much like a house built on shifting sand.
120 Stores, 3,000 Jobs, and Hundreds of Millions in Debt
The company and its affiliates operate 120 stores across 17 states under the American Signature and Value City Furniture banners and employ roughly 3,000 workers.
According to Morando, the debt load is steep: $93 million in funded debt and $236 million in unsecured liabilities, including lease obligations, intercompany debts, customer deposits, and accounts payable.
