In 2025, American Signature Inc., the parent of Value City Furniture, watched sales evaporate as shoppers abandoned furniture aisles nationwide. After decades of serving families with sofas and bedroom sets, the regional chain confronted a perfect storm of economic pressures that ended its run.
Sales dropped $150 million from 2024 to 2025, hammering the company with 89 stores across 13 states. High interest rates, persistent inflation, tariffs on imports, and fading post-pandemic demand squeezed margins already thin in furniture retail. Creditors pressed harder through late 2024 and into 2025, as inventory stacked up and discounts failed to lure buyers.
A Legacy Across Generations
Founded as Value City Furniture, the business spanned 78 years, weathering wars, recessions, and the 2008 crisis while adapting to online rivals. It anchored malls and downtowns, outfitting generations. Yet regional players faced relentless competition, demanding constant adaptation in a low-margin sector.
When the housing market froze in 2024, elevated mortgage rates and high prices stifled new construction and household moves. Fewer homeowners needed furnishings—described later by the company as one of the most severe housing declines in recent history. Unsold stock grew, forcing steeper price cuts.
From Bankruptcy to Liquidation
On November 23, 2025, American Signature filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, confirming the chain’s inability to continue. Leaders opted for liquidation over restructuring, targeting closure of all 79 Value City and 10 American Signature stores.
Liquidation began January 10, 2026, under a joint venture of SB360 Capital Partners, Hilco Global, and Gordon Brothers. Clearance signs appeared in stores across multiple states, with discounts from 40 to 60 percent drawing crowds for final purchases from the familiar brand.
The Human and Economic Toll
Hundreds of workers received termination notices. Pending customer orders were canceled, and warranty coverage remained uncertain. Online posts mourned the loss, sharing memories of family shopping trips. Communities faced empty anchor spaces, while class-action suits loomed over unfulfilled service plans.
Value City’s collapse joined a broader wave of retail retrenchment. Macy’s shuttered outlets, GameStop reduced stores, and other chains like Yankee Candle scaled back operations. Inflation, tariffs, and high interest rates curbed discretionary spending, while younger consumers prioritized sustainability and secondhand buying over traditional retailers. Even efficient chains struggled without national reach or robust e-commerce platforms.
Aftermath and Industry Reflections
Internally, leadership tensions marked the company’s final months. Some pushed for a gradual wind-down, but co-chief restructuring officer Rudolph Morando advocated full liquidation, citing the housing crisis. The Schottenstein family, which had guided the business for decades, saw the company dismantled in just 90 days.
Legal disputes emerged over extended warranties as consumers faced unclear obligations. Landlords scrambled to fill dozens of empty leases, and suppliers in Vietnam, China, and India lost a key buyer. Analysts doubted any chance of revival, citing debt burdens and a shrinking market.
American Signature’s fall underscores how interconnected housing, trade policies, and consumer habits shape the retail landscape. As liquidation concludes, the sector confronts a lingering question: will brick-and-mortar furniture sales ever rebound, or has the market permanently shifted toward digital and direct-to-consumer models?
Sources:
Retail Dive, “Value City Furniture owner files for bankruptcy citing housing crisis,” 23 Nov 2025
Retail Dive, “Value City and American Signature Furniture Launch Massive Liquidation Sales as 89 Stores Close,” 11 Jan 2026
USA Today, “Value City Furniture begins going-out-of-business sales,” 13 Jan 2026
NJ.com, “Beloved furniture store closing all locations after 78 years in business: ‘Sorry to see them go’,” 17 Jan 2026
Yahoo Finance, “78-year-old furniture chain liquidating, closing all 89 stores,” 10 Jan 2026
K2 Partners, “Value City and American Signature Furniture Launch Massive Liquidation Sales as 89 Stores Close,” 11 Jan 2026