Value City Furniture store closures: What shoppers need to know in 2025

November 24, 2025 · By sheploocloud@gmail.com · In U.S. News

Furniture giant in crisis: What’s happening at Value City Furniture & American Signature

Over the past few years, long-time furniture retailer American Signature Inc.—the parent of the well-known chains Value City Furniture and American Signature Furniture—has hit serious headwinds. On November 24, 2025, the company filed for Chapter 11 bankruptcy protection in Delaware, and announced plans to close a significant chunk of its store footprint. Reuters+1

What’s driving the trouble

The company reported that sales fell to about $803 million in 2025, down from roughly $1.1 billion in 2023, with losses of around $70 million in the past year. Business Insider+1
Among the challenges cited: a sluggish housing market (fewer homes being bought = fewer new furnishings), inflation and higher operating costs, and tariffs that have made inventory more expensive. Business Insider+1
The retailer currently owes about $117 million to lenders and has some $236 million in unsecured debt (vendors, leases, etc.). Reuters

What this means for stores and customers

American Signature plans to keep many stores open for now, but expects to close 33 locations (about one-quarter of its 120+ store network across 17 states) as part of its restructuring. Business Insider
While the process unfolds, the company is offering deep discounts to clear inventory. Reuters+1
For customers, this means you may still browse online or in-store for now, but the future of specific locations is uncertain—and return policies or service could become more complex as the company sorts through its restructuring.

Why this matters

This is a strong signal of just how challenging the furniture and home furnishings space has become. Retailers in this sector are squeezed from multiple sides: consumers postponing big purchases, rising shipping or raw-material costs, and a broader shift to online buying. The case of American Signature underscores how even established brands aren’t immune.

What to watch next

Store closures list: Watch for updates on which store locations will shut their doors and when.
Liquidation events: Deep discounts may create opportunities for bargain-hunters, but be aware that once stock is gone or stores close, service and returns may be impacted.
Asset sale process: The filing indicates the company expects to conduct an auction of its assets within 45 days, which could mean changes in ownership or brand direction. Reuters+1

Final thoughts

For shoppers: if you’ve had your eye on something at Value City Furniture or American Signature Furniture, this might be a good time to take advantage of deals—just proceed with the knowledge that service and long-term support could become more limited.
For the industry: this event serves as a warning that the furniture retail market is shifting—and that structural pressures (housing market, costs, consumer behavior) matter a lot.