When buying something from a chain that has filed for Chapter 11 bankruptcy, it’s important to get possession of the item before handing over any cash.
When Badcock Furniture filed for Chapter 11 bankruptcy, my wife and I looked at couches and found one we liked. However, they would not sell us the floor sample and either ship it immediately from that store or let us pick it up.
Instead, they wanted us to pay for the item, which they would ship from a central warehouse. We balked at this because in the 30 years we’ve covered retail, we’ve seen too many people not receive items they paid for after a bankruptcy filing.
This happened to American Signature Furniture/Value City Furniture customers, we reported on January 9. Customers reported that they did not receive the merchandise they paid for, nor did they receive refunds.
Now, the chain has said 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 with PacerMonitor.
“To maximize value, the Company has commenced a sale process pursuant to Section 363 of the US Bankruptcy Code, with the expectation of a competitive auction within approximately 45 days, to achieve greater 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, ASI will assume substantially all assets. certain related liabilities,” he shared in a press release.
This process culminated in the decision to close all locations after sales ceased. This news greeted visitors to the chain’s website on January 10.
“Closeout of ongoing sales at All American Signature Furniture and Value City Furniture locations,” the company said.
He shared some color about what happened during the bankruptcy process.
“In November 2025, American Signature Inc. began a court-supervised process to facilitate a sale. As a result of this process, American Signature Inc. is ceasing operations and closing all remaining American Signature Furniture and Value City Furniture locations. The closing sales will continue until supplies last,” it added.
“Since the end of the COVID boom, the combination of high interest rates and inflation have worked in tandem to stifle the housing market and limit the level of disposable income of consumers. Then, these problems have been further compounded this year by rising import costs 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 stores will close permanently.
Customers can visit our remaining locations and take advantage of this store closing sales while stock lasts.
All sales are final at all locations.
The company hopes to ship all orders and indicates the following.
We do our best fulfills customer orders for products that are currently in stock.
You can track your order statusHere.
If we are unable to fulfill an order for which a customer has placed a deposit, they may be able to make a claim. Further information on how to make a complaint is available here.
American Signature and Value City Furniture stores are being liquidated.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
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 closing sales at all 89 American Signature Inc. stores. remained. ASI is one of the leading home furniture retailers in the country and is the parent company of Value City Furniture.
Closeout sales begin Jan. 10 at Value City Furniture’s 79 stores in 13 states and 10 American Signature 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 unprecedented values to a broad selection of high-quality furniture already offered at truly affordable prices,” SB360 president Aaron Miller said in a press release from the joint venture. “We encourage everyone to shop early during this limited-time event while selection is at its peak. Compelling clearance discounts on stylish furnishings 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 restructuring co-director Rudolph Morando.
“While the company experienced a period of opportunistic growth during Covid, like many peers in the industry, it has since experienced a significant decline in sales volume over the past year as a result of one of the most severe downturns in the housing market in recent history, alongside other macroeconomic factors and increased cost pressures from rising inflation, increased interest rates, newly established tariffs and a slowdown in demand for furniture post-pandemic,” Morademic said.
The housing crisis is a real thing.
High mortgage interest rates have reduced affordability: Mortgage rates remained high (often above 6%) throughout 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 Center on Nationwide Housing reported.
The affordability crisis has deepened: A Harvard report found that a record share of households are spending more than 30% of their income on housing (rent or mortgage), contributing to declining home ownership and increasing the cost burden, according to a Harvard University report.
Limited supply “blocking effect”.: Many current owners have held on to low-rate mortgages instead of selling, reducing available inventory and keeping the market tight even as demand has slowed, they shared financial content.
Inventory and supply imbalances: Active inventory grew modestly in 2025, but it wasn’t enough to address a long-standing supply shortage, particularly of affordable starter homes, in many markets, according to Housing Wire.
Related: Customers left on hold after furniture chain’s bankruptcy
This story was originally published by TheStreet on January 10, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
