It’s been a bad year for retail stores, and it’s not over. Another business just filed for bankruptcy and announced that it’ll be closing stores soon. American Signature, Inc., which owns two furniture store brands, filed for chapter 11 bankruptcy relief early this week, citing several reasons for its debts. Here’s what we know about the filing, including some of the stores that will be closing.
What Is American Signature, Inc.?
American Signature, Inc. is the parent company of Value City Furniture and American Signature Furniture. It’s a 75-year-old company operating about 120 stores and employing about 3,000 people.
It has stores in 17 states. Value City Furniture is located in Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, North Carolina, New York, Ohio, Pennsylvania, and West Virginia. American Signature Furniture has a much smaller footprint, with locations only in Delaware, Georgia, Florida, and Tennessee. Both stores sell living room, dining room, and bedroom furniture and mattresses.
Why Did the Company File for Bankruptcy?
In the bankruptcy filing, American Signature cited “one of the most severe housing market declines in recent history” as a primary factor in its debt. That downturn came on the heels of massive growth during the COVID-19 pandemic, when people were investing more in their homes.
The company goes on to blame other factors for its predicament, including “macroeconomic factors and heightened cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and a post-pandemic slowdown in consumer demand for furniture.”…