COLUMBUS – American Signature Inc (ASI), the parent company of Value City Furniture and American Signature Furniture, filed for Chapter 11 bankruptcy protection, citing ongoing macroeconomic headwinds impacting the home furnishing industry.
The company said it filed voluntary petitions in the U.S. Bankruptcy Court for the District of Delaware and has initiated a court-supervised sale process, hoping for a competitive auction within approximately 45 days.
In a statement, ASI said it expects to enter into a “stalking horse” asset purchase agreement with an entity called ASI Purchaser LLC, which would set the minimum bid for its assets. The deal is subject to court approval.
The retailer, which has been in business for nearly 75 years, emphasized that its Value City Furniture and American Signature Furniture stores and websites remain open and will continue to fulfill customer orders.
“Prior to the chapter 11 filing, certain Value City Furniture and American Signature Furniture stores commenced store closing sales and are offering deep discounts while merchandise lasts,” the company said.
To support operations during the bankruptcy process, ASI has secured approximately $50 million in debtor-in-possession financing from Second Avenue Capital Partners, pending court approval.
“In the face of the ongoing macroeconomic headwinds that have impacted the entire home furnishing industry, the Company has carefully evaluated its options,” said Rudy Morando, Co-Chief Restructuring Officer for ASI. “We determined that entering a court-supervised process will provide the best opportunity to maximize value.”
The company has filed motions to continue paying employee wages and benefits and to maintain certain customer programs.
ASI, a family-owned business based in Columbus, Ohio, operates stores across the United States.