While you purchase one thing from a series that has filed for Chapter 11 chapter, it is vital to take possession of that merchandise earlier than handing over any money.
When Badcock Furnishings filed for Chapter 11 chapter, my spouse and I went to have a look at couches and located one we appreciated. They might not, nonetheless, promote us the ground pattern and both ship it instantly from that retailer or allow us to decide it up.
As a substitute, they wished us to pay for the merchandise, which they might ship from a central warehouse. We balked at that, as a result of in my 30 years of protecting retail, I’ve seen manner too many individuals not get objects they paid for after a chapter submitting.
That has been taking place with American Signature Furnishings/Worth Metropolis Furnishings clients. I reported on Jan. 9. Prospects have been reporting that they haven’t obtained the merchandise they’ve paid for, nor have they obtained refunds.
Now, the chain has shared in a press launch and on its web site, that each one shops are closing.
American Signature Furnishings/Worth Metropolis Furnishings closing all areas
When Worth Metropolis Furnishings’s guardian firm, American Signature Furnishings, filed for Chapter 11 chapter in Nov., it meant to reorganize, based on paperwork filed on PacerMonitor.
“In order to maximize value, the company has commenced a sale process pursuant to Section 363 of the U.S. Bankruptcy Code in the hope of a competitive auction within approximately 45 days to elicit higher value for the benefit of all stakeholders. ASI expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC under which, subject to court approval, ASI Purchaser LLC will acquire substantially all of the company’s assets and assume certain related liabilities,” it shared in a press launch.
That course of has culminated within the resolution to shut all areas after going-out-of-business gross sales. That information greeted guests to the chain’s web site on Jan. 10.
“Closing Sales Now Underway at All American Signature Furniture and Value City Furniture Locations,” the corporate shared.
It shared some shade as to what occurred in the course of the chapter course of.
“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 winding down operations and closing all remaining American Signature Furniture and Value City Furniture locations. Closing sales will continue while inventory lasts,” it added.
Exterior analyst sees the identical issues the chain cited
“Since the end of the COVID boom, the combination of high interest rates and inflation have worked concurrently to stifle the housing market and limit consumers’ disposable income levels. Then, those issues were further compounded this year by rising costs on imports due to round after round of tariffs,” Furnishings At the moment reported.
Worth Metropolis Furnishings and American Signature Furnishings reply key questions:
The corporate shared an FAQ on its web site that solutions== some key questions:
- As a part of the result of our sale course of, all VCF and ASF retail shops will probably be completely closing.
- Prospects can go to our remaining areas and make the most of retailer closing gross sales whereas stock lasts.
- All gross sales are last in any respect areas.
The corporate hopes to ship all orders:
- We’re doing our greatest to fulfill buyer orders for merchandise which are at the moment in inventory
- You possibly can monitor your order standingright here.
- If we’re unable to meet an order that a buyer positioned a deposit for, they could possibly file a declare. Further info on the best way to file a declare is accessible right here.
American Signature and Worth Metropolis Furnishings shops are being liquidated.
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Gordon Brothers dealing with going-out-of-business gross sales
A three way partnership of SB360 Capital Companions, Hilco International, and Gordon Brothers has obtained chapter court docket approval to function going-out-of-business gross sales in any respect 89 remaining American Signature Inc shops. ASI is likely one of the nation’s main house furnishings retailers and is the guardian firm of Worth Metropolis Furnishings.
The going-out-of-business gross sales begin as we speak in Worth Metropolis Furnishings’s 79 shops throughout 13 states, and American Signature’s 10 shops positioned in Delaware and Florida. Customers will discover reductions of as much as 50% off authentic costs on a big selection of house furnishings, together with lounge, eating room, and bed room collections, in addition to decor, lighting, mattresses, and rugs.
“A sale of this magnitude will bring never-before-seen values to a broad selection of top-quality furniture already offered at truly affordable prices,” mentioned SB360 President Aaron Miller, in a press launch on behalf of the three way partnership. “We encourage everyone to shop early during this limited-time event while selection is at its best. The compelling liquidation discounts on stylish furniture for every room of the home will make this a short sale in these stores.”
American Signature blames housing disaster
American Signature blamed its Chapter 11 chapter submitting on “one of the most severe housing market declines in recent history,” according to a bankruptcy declaration from co-Chief Restructuring Officer Rudolph Morando.
“Although the company experienced a period of opportunistic growth during Covid, like many peers in the industry, it has since faced significantly decreased sales volume over the past year, resulting from one of the most severe housing market declines in recent history, alongside other macroeconomic factors and heightened cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and a post-pandemic slowdown in consumer demand for furniture,” Morando said in the declaration.
The housing crisis is a real thing.
Main Drivers of the 2025 Housing Crisis
- High mortgage interest rates reduced affordability: Mortgage rates stayed elevated (often above 6 %) throughout 2025, making monthly payments much pricier and pricing many buyers out of the market, according to Fannie Mae.
- Home prices remained prohibitively high relative to incomes: Even as price growth cooled, median home prices stayed at record levels, far above historical norms, relative to household income, reported the Joint Center for the Nation’s Housing.
- Affordability crisis deepened: A Harvard report found a record share of households spending more than 30 % of income on housing (rent or mortgage), contributing to declining homeownership and rising cost burden, according to a Harvard University report.
- “Lock‑in effect” limited supply: Many current homeowners held on to low‑rate mortgages instead of selling, shrinking available inventory and keeping the market tight even as demand slowed, shared Financial Content.
- Inventory and supply imbalances: Active inventory rose modestly in 2025, but it wasn’t enough to fix long‑standing supply shortages, especially of affordable starter homes, in many markets, according to Housing Wire.
Associated: Prospects left hanging after furnishings chain chapter
