75-year-old furniture chain files for bankruptcy and closes a quarter of its stores
Another furniture chain has declared bankruptcy — as cash-strapped Americans hold off on home improvement projects.
On Sunday, American Signature, a 75-year-old furniture chain that operates Value City Furniture and American Signature Furniture stores, filed for Chapter 11 bankruptcy.
The retailer operates more than 120 stores and employs about 3,000 people.
Executives blamed 'one of the most severe housing market declines in recent history' in their bankruptcy documents.
It's yet another sign that America's housing market is in decline, as several furniture chains have declared bankruptcies, improvement stores have reported recent sales declines, and banks are sending more homes into foreclosure.
American Signature started liquidation sales before filing and plans to shutter 33 locations as part of the restructuring plan, according to a declaration from co–chief restructuring officer Rudolph Morando.
It's already started liquidation sales at several stores, including store-wide deals of 20 percent to 40 percent off. American Signature said the company will still hold Black Friday sales in stores and on its website.
The chain's financial slide has been sharp.
The furniture company is shutting down 33 stores, more than a quarter of its American shops
Net sales fell by nearly $150 million from 2024 to 2025, while losses widened by $52 million.
The company now says it needs debt financing to keep the lights on while it searches for a buyer.
It's a dramatic reversal from the early-pandemic boom, when lockdowns and stimulus checks sent consumers scrambling to upgrade their living spaces that were suddenly visible during Zoom meetings.
In 2021, American Signature's sales jumped 37 percent. But that momentum didn't last.
'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,' Morando said.
American Signature owes between $500 million and $1 billion, according to its petition.
Major unsecured creditors include other furniture giants such as Sealy Mattress Manufacturing, Tempur-Pedic, and Ashley Furniture Holdings.
The chain is not alone in its struggles.
Furniture stores have struggled since pandemic lockdowns, as customers have stopped home improvement projects
The company said customer have faced one of the 'most severe housing market declines in recent history'
Last week, The Home Depot said during its earnings call that it served fewer customers in the past three months than expected.
'Our customers tell us that they remain on the sidelines due to uncertainty and perhaps the hesitation to make larger financial commitments amid an uncertain economic environment,' Home Depot's CFO, Richard McPhail, told the Wall Street Journal.
'They are seeing home prices now decline in more markets than rising, and we know they have job concerns.'
Lowe's reported a similar downturn and missed Wall Street's expectations the following day.
Those pressures have put other home furnishing stores in financial distress.
Since the pandemic, multiple chains like Bed Bath & Beyond, Conn's HomePlus, The Container Store, Big Lots, Christmas Tree Shops, and At Home have tumbled into bankruptcy court.
