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American Signature Inc., the parent company of American Signature Furniture and Value City Furniture, announced it filed for Chapter 11 bankruptcy in Delaware in a news release shared on Sunday (November 25).
The company said it plans to sell the business and expects to reach a purchase agreement with ASI Purchaser LLC.
“For nearly 75 years, American Signature has served as a family-owned furniture destination that communities could rely on to provide style, quality, and value,” said Rudy Morando, Co-Chief Restructuring Officer for American Signature Inc. “In the face of the ongoing macroeconomic headwinds that have impacted the entire home furnishing industry, the Company has carefully evaluated its options to assess the best path forward in the current operating environment. Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value. We deeply appreciate our team members, customers, and partners and are determined to serve them throughout this process.”
The company confirmed that Value City Furniture and American Signature Furniture stores and websites would "remain open at this time," though some stores had already began closing prior to the bankruptcy filing. ASI was reported to have secured approximately $50 million in debtor-in-possession financing, which will support certain operations and allow the company to maximize value through its bankruptcy and sale process, the news release states.