The Fall of a 78-Year-Old Giant: All 89 American Signature and Value City Furniture Stores to Close
By patrickUSA | January 12, 2026
The era of “The Right to a Well-Furnished Life” is officially coming to a permanent, unceremonious end.
What began in November 2025 as a hopeful attempt to reorganize under Chapter 11 bankruptcy has devolved into a total liquidation for American Signature Inc. (ASI). The company, a 78-year-old staple of the American retail landscape and parent to both American Signature Furniture and Value City Furniture, has confirmed that it will shutter all 89 remaining locations.
The decision marks a somber turning point for a family-owned business that once operated over 120 stores across 17 states. Despite initial plans to find a “stalking horse” buyer to keep the brand alive, the company is now winding down operations entirely, leaving thousands of employees facing layoffs and customers scrambling for answers.
A Failed Path to Redemption
When American Signature first filed for bankruptcy protection on November 22, 2025, the narrative was one of resilience. The company cited a “perfect storm” of economic headwinds: a stagnant housing market, persistent inflation, and the rising costs of tariffs on imported goods.
Initially, the goal was clear:
- Restructure: Use the bankruptcy process to shed underperforming leases.
- Sell: Find a buyer through a Section 363 sale to take over the remaining assets as a “going concern.”
- Sustain: Keep the core of the business alive for its 3,000+ employees.
However, the auction process failed to produce a savior. On January 10, 2026, visitors to the company’s website were met with a stark announcement: “Closing Sales Now Underway at All American Signature Furniture and Value City Furniture Locations.” The dream of a reorganized future had been replaced by the reality of a total “going-out-of-business” event.
The Danger of the “Open Order”
For consumers, the bankruptcy of a major retailer is more than a headline—it is a financial risk. In my 30 years covering the retail sector, I have issued the same warning dozens of times: If you cannot walk out of the store with the item in your hand, do not give them your money.
We are now seeing the fallout of shoppers who didn’t—or couldn’t—follow that rule. Since the liquidation announcement, reports have flooded in from customers who paid for furniture that has yet to arrive.
| Customer Concern | Current Status |
| Pending Orders | Fulfilling “to the best of ability” through remaining stock; many orders may go unfulfilled. |
| Refunds | Stores are generally not offering direct cash refunds for unfulfilled orders. |
| Warranties | New “Pure Promise” warranties are no longer being sold; existing ones are through third parties. |
| Gift Cards | Most locations have ceased accepting gift cards as they transitioned to liquidation status. |
If you have an outstanding order, the advice is simple but painful: monitor your delivery date closely. If the store misses its window, your only recourse may be filing a claim as an unsecured creditor in the Delaware Bankruptcy Court—a process where everyday shoppers are often last in line for payment.
Why the Giant Toppled
The collapse of American Signature isn’t just about one company’s bad luck; it’s a diagnostic of the current American economy. The furniture industry is uniquely sensitive to the “housing ecosystem.” When people aren’t buying homes due to high mortgage rates, they aren’t buying dining room sets or sectionals to fill them.
Furthermore, the “COVID-19 sugar high” of 2021—where stimulus checks and home-office upgrades sent furniture sales soaring—created a bubble that has now burst. ASI saw net sales drop by nearly $150 million between 2024 and 2025 alone.
“The Company has faced significantly decreased sales volume… resulting from one of the most severe housing market declines in recent history,” stated co-Chief Restructuring Officer Rudolph Morando in court filings.
What Happens Next?
The liquidation is being managed by a joint venture of SB360 Capital Partners, Hilco Global, and Gordon Brothers. Discounts of 25% to 50% began on January 9 and are expected to deepen as inventory thins out.
For the 79 Value City Furniture stores and 10 American Signature locations, the lights will stay on only until the last lamp and sofa are sold. For the Schottenstein family, who founded the company in 1948, it is the end of a multi-generational legacy in the furniture business.
As we watch another iconic brand disappear, let it serve as a reminder: in the world of retail bankruptcy, the “Going Out of Business” sign is a signal for shoppers to find deals, but also a warning to protect their wallets.
Given the total liquidation of all American Signature Furniture and Value City Furniture locations, many customers are left with questions about orders, refunds, and warranties.
Below is a breakdown of the most frequently asked questions based on current bankruptcy filings and store closure announcements as of January 2026.
🛍️ Shopping & Liquidation Sales
Are all stores closing? Yes. While the company initially planned to reorganize 89 stores, the parent company (ASI) has since moved into a total liquidation. All American Signature and Value City Furniture locations are now holding “Going Out of Business” sales.
What are the discounts? Current discounts range from 25% to 50% off original prices. These are expected to deepen as inventory dwindles.
Can I return or exchange items purchased during the sale? No. All sales during the liquidation period are final. Stores are no longer accepting returns or exchanges for recently purchased products.
💳 Gift Cards & Payments
Can I still use my gift cards? Generally, no. In many states, the deadline to use gift cards was December 22, 2025. Most locations have officially ceased accepting gift cards as they transitioned to final liquidation status. If you still hold a balance, you may need to file a claim in bankruptcy court (see below).
Do I still have to make payments on my financed furniture? Yes. Your financing agreement is typically through a third-party lender (like Synchrony or Fortiva), not the furniture store itself. The store’s closing does not cancel your legal obligation to pay your remaining balance.
🚚 Orders & Refunds
I paid for furniture that hasn’t arrived. What should I do? The company is attempting to fulfill orders with existing stock “to the best of its ability.” However, many orders will go unfulfilled.
- Contact Customer Care: Call 1-888-751-8552 to check your order status.
- Contact Your Bank: If your order is delayed or the store confirms it cannot be fulfilled, immediately contact your credit card company or bank to initiate a chargeback dispute. This is often the fastest way to get your money back.
- File a Claim: If a chargeback is not possible, you must file a “Proof of Claim” as an unsecured creditor.
Can I get a refund at the store? No. Individual store locations are generally not authorized to issue cash or credit refunds for unfulfilled orders during the liquidation process.
🛠️ Warranties & Repairs
Is my warranty still valid? * Manufacturer Warranties: Warranties provided by brands like Sealy or Tempur-Pedic are still valid and handled by the manufacturers directly.
- Extended Warranties: Most extended protection plans (like “Pure Promise”) are managed by third-party providers. You should contact the administrator listed on your original protection plan document.
- In-Store Service: The stores are no longer honoring in-house repair or service requests.
⚖️ Legal Resources
How do I file a bankruptcy claim? The bankruptcy is being handled by Verita Global. You can view court documents and file a formal claim at their dedicated portal:
- Website: veritaglobal.net/americansignature
- Phone: 1-877-726-6511
