When you buy something from a chain that has filed for Chapter 11 bankruptcy, it’s important to take possession of that item before you hand over any cash.
When Badcock Furniture filed for Chapter 11 bankruptcy, my wife and I went looking at couches and found one we liked. They would not, however, sell us the soil sample and either send it immediately from that warehouse or let us collect it.
Instead, they wanted us to pay for the item, which they would send from a central warehouse. We moved to this, because in my 30 years covering retail sales, I have seen too many people who do not get items they paid for after a bankruptcy declaration.
That has been happening with American Signature Furniture/Value City Furniture customers, I reported January 9. Customers were reporting that they did not receive the merchandise they paid for, nor did they receive refunds.
Now, the chain has shared in a press release and on its website that all stores are closing.
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 initiated a sale process pursuant to Section 363 of the United States Bankruptcy Code with the hope of a competitive auction within approximately 45 days to obtain a higher value for the benefit of all interested parties. ASI expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC under which, subject to court approval of the buyer, the company will acquire substantially all of ASI’s LLC assets.certain related liabilities,” it shared in a press release.
That process culminated in the decision to close all locations following the exit sale of the business. That news greeted visitors to the chain’s website on January 10.
“Closeout Sale Now On at all American Signature Furniture Locations and Value City Furniture Locations,” the company said.
Sharing some color about what happened during the bankruptcy process.
“In November 2025, American Signature Inc. began a court-supervised process to facilitate the 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. The closing sale will continue while inventory lasts,” it added.
“Since the end of the COVID boom, the combination of high interest rates and inflation have worked simultaneously to stifle the housing market and limit the disposable income levels of consumers. Then, those issues continued to increase this year with the increase in costs on imports due to round after round of tariffs,” Furniture Today reported.
The company has shared an FAQ on its website that answers some key questions:
As part of the outcome of our sales process, all VCF and ASF retail stores will be permanently closed.
Customers can visit our remaining locations and take advantage of them 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.
can you track the status of your orderhere.
If we are unable to fulfill an order for which a customer has placed a deposit, they may be able to file a claim. Additional information on how to file a claim is available here.
American Signature Furniture and Value City stores are being liquidated.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
The American Signature and Value City Furniture stores are being liquidated.Shutterstock
A joint venture of SB360 Capital Partners, Hilco Global, and Gordon Brothers has received bankruptcy court approval to operate a going-out-of-business sale 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.
Going out of business sales begin Jan. 10 at 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 wide selection of the highest 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 the selection is at its best. The compelling liquidation discounts on stylish furniture for every room in the home will make this a short sale at these stores.”
American Signature blamed its Chapter 11 bankruptcy filing on “one of the most severe housing market downturns in recent history,” according to a bankruptcy filing by co-Chief Restructuring Officer Rudolph Morando.
“Although the company experienced a period of opportunistic growth during Covid, like many of its peers in the industry, it has since faced a significant decrease in sales volume over the past year, resulting from one of the most serious downturns in the housing market in recent history, along with other macroeconomic factors and greater cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and the demand following a decline in consumption.
The housing crisis is a real thing.
High interest rates on mortgages have reduced affordability: Mortgage rates have remained high (often above 6%) through 2025, making monthly payments much more expensive and pricing many buyers out of the market, according to Fannie Mae.
House prices remained prohibitively high relative to incomes: Even as price growth cooled, median home prices remained at record levels, well above historical norms, relative to household income, the Joint Nation’s Housing Center reported.
The affordability crisis has increased: A Harvard report found a record share of families spending more than 30% of income on housing (rent or mortgage), which has contributed to a decline in home ownership and an increase in the cost burden, according to a Harvard University report.
Limited supply “Lock-in effect”.: Many current homeowners held on to low-rate mortgages instead of selling, reducing available inventory and keeping the market tight even as demand slowed, shared Financial Content.
Imbalances in inventory and supply: Active inventory increased modestly in 2025, but it was not enough to fix a long-standing supply shortage, especially of affordable starter homes, in many markets, according to Housing Wire.
Related: Customers left hanging after furniture chain failure
This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.