When you buy something from a chain store that has filed for Chapter 11 bankruptcy, it’s important to take possession of the merchandise before handing over any cash.
When Badcock Furniture filed for Chapter 11 bankruptcy, my wife and I went to look at sofas and found one we liked. However, they will not sell us flooring samples but will ship them immediately from the store or have them picked up by us.
Instead, they want us to pay for the item and have it shipped from a central warehouse. We’re hesitant to do that because in my 30 years of covering retail, I’ve seen too many people file for bankruptcy and not get what they paid for.
As I reported on January 9, this was the situation encountered by Signature Furniture/Value City Furniture customers in the United States. Customers reported that they did not receive the items they paid for and did not receive refunds.
Now, the chain said in a press release and on its website that all stores will be closed.
Value City Furniture intended to reorganize when its parent company, American Signature Furniture, filed for Chapter 11 bankruptcy in November, according to documents filed on PacerMonitor.
“To maximize value, the company has initiated sale proceedings under Section 363 of the U.S. Bankruptcy Code and hopes to conduct a competitive auction within approximately 45 days that will result in higher value for the benefit of all stakeholders. ASI expects to enter into a ‘walk-in’ asset purchase agreement with ASI Buyer LLC, under which, subject to court approval, ASI Buyer LLC will acquire substantially all of the company’s assets and assume certain related liabilities,” it shared in a press release.
This process ultimately led to our decision to close all locations following going-out-of-business sales. Visitors to the chain’s website saw the news on Jan. 10.
“Sales are ongoing at all American Specialty Furniture and Value City Furniture stores,” the company shared.
It has some similarities with what happens during bankruptcy.
“In November 2025, American Signature Inc. began a court-supervised process to facilitate sales. As a result of this process, American Signature Inc. will wind up operations and close all remaining American Signature Furniture and Value City Furniture stores. Sales will continue while supplies last,” the company added.
According to Furniture Today, “Since the end of the COVID-19 pandemic, high interest rates and inflation have worked together to suppress the housing market and limit consumers’ disposable income levels. Then, these problems have been further exacerbated this year as rounds of tariffs have led to rising import costs.”
The company shared an FAQ on its website that answers some key questions:
-
As a result of our sales process, All VCF and ASF retail stores will be permanently closed.
-
Customers can visit our remaining locations and take advantage of store closed sale While stocks last.
-
All sales at all locations are final.
The company expects to ship all orders and states the following.
-
we are doing our best Fulfill customer orders For products currently in stock.
-
you can Track your order statushere.
-
If we are unable to fulfill an order for which a customer has paid a deposit, they may make a claim. For more information on how to make a claim, see here.
A joint venture of SB360 Capital Partners, Hilco Global and Gordon Brothers has received bankruptcy court approval to conduct going-out-of-business sales at all 89 remaining American Signature Inc. stores. ASI is one of the nation’s leading home furnishings retailers and the parent company of Value City Furniture.
Going out of business sales will begin on Jan. 10 at Value City Furniture’s 79 stores in 13 states and American Signature’s 10 stores in Delaware and Florida. Shoppers can enjoy up to 50% off original prices on a wide range of homewares, including living, dining and bedroom collections, as well as decorative items, lighting, mattresses and rugs.
“A sale of this magnitude will bring unprecedented value to a range of quality furniture at truly affordable prices,” SB360 President Aaron Miller said in a release on behalf of the joint venture. “We encourage everyone to shop early during the limited-time event while selecting the best products. Compelling clearance discounts on stylish furniture for every room in the home will make these stores’ short sales possible.”
American Signature blamed “one of the worst housing market downturns in recent history” for its Chapter 11 bankruptcy filing, according to a bankruptcy statement from co-chief restructuring officer Rudolph Morando.
“While the company has experienced a period of opportunistic growth during the COVID-19 pandemic, like many of its peers in the industry, it has faced significant sales declines over the past year due to one of the worst downturns in the real estate market in modern times, as well as other macroeconomic factors and increasing cost pressures from rising inflation, rising interest rates, newly enacted tariffs and a post-pandemic slowdown in consumer demand for furniture,” Morando said in a statement.
The housing crisis is real.
-
High mortgage rates reduce affordabilityFannie Mae said mortgage rates have remained high throughout 2025 (often above 6%), resulting in higher monthly payments and causing many buyers to exit the market.
-
Housing prices remain prohibitively high relative to incomes: Despite slowing price growth, median home prices remain at record levels relative to household income and well above historical norms, the United Center on Housing reports.
-
Affordability crisis deepens: Households are spending more than 30% of their income on housing (rent or mortgage) at a record high, leading to falling homeownership rates and rising cost burdens, a Harvard report found.
-
‘Lock-in effect’ limited supply: Many existing homeowners are holding on to low-rate mortgages rather than selling, reducing available inventory and keeping the market tight amid slowing demand and shared financial content.
-
Inventory and supply imbalancesAccording to Housing Wire, active inventory rose slightly in 2025, but it wasn’t enough to address long-standing supply shortages in many markets, especially affordable housing.
RELATED: Customers in trouble after furniture chain goes bankrupt
This article was originally published by TheStreet on January 10, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.