Furniture Retailer American Signature Files for Bankruptcy, Cites Tariffs

American Signature, parent company of furnishings retailers American Signature Furniture and Value City, has filed for Chapter 11 bankruptcy protection, according to a Nov. 22 filing in United States Bankruptcy Court for the District of Delaware. The company pointed to unfavorable economic conditions driven by the Trump administration’s tariff policies and a slower housing market as reasons for its slumping sales.

“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,” said Rudy Morando, co-chief restructuring officer for ASI. “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.”

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The Ohio-based company is owned by retail entrepreneur and American Eagle Outfitters CEO Jay L. Schottenstein’s SB360 Capital Partners, which in addition to owning American Eagle also owns Aerie, DSW, Designer Brands and Schottenstein Stores Corporation.

As part of the Chapter 11 filing, the company will pursue a sale at auction within 45 days, “to elicit higher value for the benefit of all stakeholders.” American Signature also said it anticipates entering into a stalking horse asset purchase agreement with ASI Purchaser LLC, which would acquire substantially all of the company’s assets and assume limited liabilities, subject to court approval.

The company said that it has secured around $50 million in debtor-in-possession financing from Second Avenue Capital Partners LLC, which also is a Schottenstein affiliate. That financing will support certain operations and “the company’s efforts to maximize value through the Chapter 11 cases and sale process.”

American Signature has filed several customary motions seeking authorization to continue payment of employee wages and benefits, maintaining certain customer programs and satisfying post-petition obligations to vendors and partners, pending court approval.

In its filing, American Signature listed liabilities ranging from more than $500 million to $1 billion, with assets of just over $100 million to $500 million. Between 1,000 and 5,000 creditors were mentioned in the filing, with $80,250,676 in claims from the top 30 unsecured creditors in the bankruptcy, including Man Wah, TargetCast LLC, H317 Logistics, Riverside Furniture Corp. and Dickson Furniture International.

American Signature will close 33 stores as part of the bankruptcy filing, and those closures began in October and are slated to wrap up in late January 2026. As of last year, the company operated 123 stores with an estimated sales of $1.07 billion. Value City and American Signature Furniture stores and websites will continue to fulfill customer orders during the court-supervised process, with deep discounts on available merchandise.