A Beloved Furniture Brand Now Closes in 14 States

In a move that’s sending ripples through the home decor world, American Signature Inc., the parent company behind Value City Furniture and American Signature Furniture, has filed for Chapter 11 bankruptcy protection.

The filing, announced just days ago, paves the way for a massive restructuring—and unfortunately for loyal shoppers, it means the end of the line for dozens of stores across 14 states.

Liquidation sales kicked off immediately, with everything from sofas to sectionals marked down in a frantic bid to clear inventory before the doors slam shut for good by January 2026.

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This isn’t just another retailer trimming the fat; it’s a stark reminder of how tough the furniture game has gotten.

With over 120 locations spread across 17 states, American Signature was no small player, employing more than 1,300 people at Value City alone and drawing in over two million web visits annually.

But as e-commerce giants and bigger box stores squeeze the mid-tier brands, this bankruptcy feels like the latest casualty in a brutal year for brick-and-mortar retail.

The Bankruptcy Breakdown: What’s Happening and Why Now?

The voluntary Chapter 11 petition was lodged to allow the company to reorganize its debts while selling off assets to a so-called “stalking-horse bidder” named ASI Purchaser LLC.

Think of it as a structured fire sale with court supervision—buyers get a shot at snapping up the company’s guts at a bargain, and the business gets a fighting chance to emerge leaner on the other side.

Court documents detail the plan, but for now, the focus is on those going-out-of-business tags slapping prices on bedroom sets and dining tables.

This comes hot on the heels of a rough 2025 for the sector.

Retailers have already vacated a staggering 120 million square feet of space this year due to closures and bankruptcies, outpacing new openings by more than 1.5 times.

Just last month, a 77-year-old furniture chain bit the dust with its own Chapter 11 filing, underscoring how even established names are buckling under rising costs, shifting consumer habits, and that relentless online competition.

Compared to behemoths like La-Z-Boy, which boasts 2,571 stores nationwide, or Mattress Firm with 2,373 outposts, American Signature’s footprint was modest—but it punched above its weight in affordability and selection for everyday families.

Now, with these closures, entire communities stand to lose that convenient, one-stop furniture fix.

A State-by-State Hit List: Where the Doors Are Closing

The axe is falling hard in 14 states, from the Midwest heartland to the bustling Southeast. While the company hasn’t released an exhaustive tally of affected stores, court filings and the Value City website paint a clear picture of the carnage.

Here’s a breakdown of the confirmed shutdowns, starting with Value City Furniture locations:

• Illinois: One store in Gurnee at 6116 Grand Ave.
• Indiana: Hits in Clarksville (945 E. Lewis and Clark Parkway) and Mishawaka (Lithonia location).
• Kentucky: Louisville’s 9070 Dixie Highway outpost.
• Maryland: Rockville Pike in Rockville (12055 Rockville Pike).
• Michigan: A tough blow here with six stores—Ann Arbor (425 E Eisenhower Parkway), Clinton Township (33801 S. Gratiot Ave.), Dearborn (5701 Mercury Drive), New Baltimore (50400 Gratiot Ave.), Novi (27775 Novi Road), and Portage (Lithonia).
• Missouri: St. Louis at 7077 Chippewa St.
• New York: Amherst (4220 Maple Road) and Cheektowaga (800 Thruway Plaza Drive).
• North Carolina: Charlotte’s 2320 Sardis Road North.
• Ohio: Centerville (2070 Miamisburg-Centerville Road) and Cincinnati (650 Eastgate Drive S., Suite A).
• Pennsylvania: Mechanicsburg at 6520 Carlisle Pike, Suite 400.
• Virginia: Newport News (12149 Jefferson Blvd.) and Richmond (9110 West Broad St.).

Switching gears to American Signature Furniture, the closures cluster in the South:

• Florida: Miami’s 7775 SW 40th Street.
• Georgia: A whopping seven locations, including Alpharetta (7461 N. Point Parkway), Atlanta (3755 Carmia Drive, Suite 1000), Duluth (3900 Venture Drive), Kennesaw (840 Barrett Parkway NW, Suite 250), Morrow (1972 Mt. Zion Road), Smyrna (2540 Cumberland Blvd.), and Lithonia (2918 Turner Hill Road).
• Tennessee: Clarksville (2821 Wilma Rudolph Blvd.), Franklin (1770 Galleria Blvd.), and Madison (2130 Gallatin Pike North).

These aren’t just dots on a map—they’re neighborhood anchors where folks have outfitted their first apartments or upgraded family rooms.

If you’re in one of these areas, check the company’s site for the full list and sale details before it’s too late.

Heartbreak on the Homefront: Employees and Customers Feel the Sting

For the rank-and-file workers who’ve kept these showrooms humming, the news lands like a gut punch.

With Value City’s 1,300-plus staffers already stretched thin, the layoffs tied to these closures could displace hundreds more, though exact numbers haven’t been disclosed yet.

In an industry notorious for slim margins and seasonal slumps, finding new gigs won’t be easy—especially as the holiday rush ironically coincides with pink slips.

Customers, meanwhile, are venting their frustrations online, turning Facebook threads into virtual support groups.

One shopper, still basking in the glow of a summer purchase, posted: “I wonder what this means for my warranty, I JUST got with my new couch this summer.”

Others are griping about undelivered sectionals and refund headaches, with one thread exploding over a botched order that now feels like a bad bet on a sinking ship.

It’s a chaotic scramble: Will warranties hold up under new ownership?

Can you still get that refund on the coffee table that arrived wobbly? The uncertainty is amplifying the stress for anyone mid-furnishing frenzy.

What’s Next for Furniture Shoppers—and the Industry at Large?

As liquidation tags fly and trucks haul away fixtures, the big question looms: Who picks up the pieces for everyday buyers craving that in-person touch?

With giants like La-Z-Boy and Mattress Firm dominating, smaller chains like this one often filled the gap for budget-conscious folks who want to kick the tires before buying.

Their exit narrows options, potentially driving more traffic to Amazon or Wayfair, where the “try before you buy” magic is harder to replicate.

This bankruptcy isn’t isolated—it’s symptomatic of a retail reckoning.

As 2025 wraps with more square footage going dark than lighting up, experts warn that mid-market furniture could see even more consolidation.

For now, if you’re hunting deals, hit those closing stores fast. But longer-term, it might be time to rethink how we shop for the spaces we call home.

Also Read: Famous Coffee Chain Now Closing Several Stores Across America

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