The furniture industry relies heavily on a strong economy and a vibrant real estate market. When people worry about money, they only replace furniture when they really need it.
When worried about rising costs, job losses, and general economic stress, few people would buy a sofa they don’t need. The same logic applies to buying a home.
When the housing market slows down, fewer people want new furniture, and data suggests the housing market has slowed.
-
New single-family home sales plummet: Buy a new home Down 13.7% in May 2025 and is A year-on-year decrease of 6.3%That points to weak buyer demand, according to the Department of Housing and Urban Development.
-
Existing home sales decline:Zillow reports Existing home sales fell 0.5% in April 2025 and is 2% lower than April 2024activity weakened compared to last year.
-
New Listings and Pending Sales Weak:Redfin data display The number of newly listed homes fell 1.7% year-on-year and Pending sales fell 4.1%homes take longer to get under contract (51 days).
-
Stocks rising: Active listings and inventory An increase compared with the previous periodThis gives buyers more options and slows down transactions, according to the Compass Blog.
In some states, inventories increased dramatically (e.g., Texas +48%, Florida +27%, Arizona +22%).
When demand drops, it has a ripple effect throughout the furniture industry.
More bankruptcies:
Accio reports: “The complex web of furniture manufacturing, logistics and retail partnerships faces unprecedented challenges as the industry grapples with rising inventory management costs and shifting consumer demand patterns. Suppliers, from fabric manufacturers to logistics providers, must now reassess their exposure to retail restructuring risks while maintaining service levels for ongoing operations.”
A series of problems resulted in American Signature Furniture and its Value City Furniture brand falling into Chapter 11 bankruptcy protection.
-
Chapter 11 Filing: American Signature, Inc., parent company of American Signature Furniture and Value City Furniturefiled for Chapter 11 bankruptcy in the U.S. Bankruptcy Court of Delaware on November 22, 2025. Case number: 25-12105According to PacerMonitor.
-
court: The U.S. Bankruptcy Court for the District of Delaware, overseen by Judge J. Kate Stickles (via PacerMonitor).
-
Covered brands: Document cover American style furniture and Value Urban Furniture Store operations nationwide, according to PacerMonitor.
-
reason: The company cited lower sales, macroeconomic headwinds, a soft housing market, inflation and increased operating costs as factors, Retail Dive reported.
The company shared some thoughts on these headwinds.
Rudy Morando, co-chief restructuring officer of American Signature, said in a release: “In the face of continued macroeconomic headwinds affecting the entire home furnishing industry, the company carefully evaluated its options to assess the best path forward in the current operating environment. Through our review, we determined that entering a court-supervised process would provide the best opportunity to maximize value. We are deeply grateful to our team members, customers and partners and determined to serve them throughout the entire process.”
-
Shops and jobs: The retailer operates About 120 stores It has about 3,000 employees in about 17 states; Retail Dive reported that the company had begun closing stores in select locations and conducting clearance sales ahead of the filing.
-
Asset sale plan: ASI plans to sell almost all assets through ASI Tracking Horse/Section 363 Sales Process; JD Supra said it expects to enter into a purchase agreement with “ASI Buyer LLC,” subject to court approval.
-
Operations during bankruptcy: The store and website are Remain open during the Chapter 11 process and continue to provide customers with discounts, shared retail and restaurant facilities business concurrent services.
-
Debtor-in-possession financing: ASI gets approx. US$50 million in DIP financing To support ongoing operations during the bankruptcy process, Retail & Restaurant Facilities Business reported.
Furniture stores have been struggling since the start of the coronavirus pandemic.Shutterstock
The company has yet to make an overall statement on its store closing plans. This may be because it doesn’t have all the answers yet. However, there are some key dates (including dates that have already passed) that customers should be aware of.
-
December 7, 2025 – Last day to accept returns/exchanges (estimated): Value City Furniture expects to accept returns and exchanges Only until December 7, 2025. After that date, most sales are likely to be final, WFMJ reports.
-
December 22, 2025 – Gift cards must be used by this date: Pennsylvania Attorney General gets extension, demands Value City and American Signature gift cards valid through December 22, 2025. gift card will not be accepted at stores that have begun closing sales, according to a press release.
-
Late 2025/early 2026 – Store closing sales expected to be completed: According to Fast Company, some reports indicate that liquidations and closing sales at affected locations are expected to continue until the end of January 2026, but the exact final date depends on inventory and court approval.
-
Proof of claim: The bankruptcy court has No deadline set yet Used to file bankruptcy claims, but customers with issues (such as gift card balances) can file a proof of claim through the bankruptcy administrator.
RELATED: Major convenience store chain to close 500 stores as market shifts
-
Illinois:
• Gurney: 6116 Grand Avenue -
Indiana:
•Clarksville: 945 E. Lewis and Clark Avenue
• Mishawaka: Lithonia location -
Kentucky:
• Louisville: 9070 Dixie Highway -
Maryland:
• Rockville: 12055 Rockville Pike -
Michigan:
•Ann Arbor: 425 E. Eisenhower Blvd.
• Clinton Township: 33801 S. Gratiot Avenue
• Dearborn: No. 5701 Mercury Road
• New Baltimore: 50400 Gratiot Avenue
• new: 27775 Novi Road
• Portage: Lithonia location -
Missouri:
• St. Louis: 7077 Chippewa Street -
New York:
• Amherst: No. 4220 Maple Road
•Cheektowaga: 800 Highway Plaza Avenue -
North Carolina:
• Charlotte: No. 2320 Sardis Road North -
Virginia:
• Richmond: 9110 West Broad Street (Henrico area) closed in early January due to bankruptcy
Source: US Daily Express
These may not be the only American specialty furniture/value urban furniture stores to close. The company is showing “clearance sales” on many store websites that are not on this list, but those locations may or may not close at the end of the process.
“Value City Furniture and American Signature Furniture stores and websites remain open at this time, and we will continue to fulfill customer orders and do our best to provide ongoing customer service in the process,” the company said in a note to Business Insider.
RELATED: Home Depot issues serious warning about housing market, economy
This article was originally published by TheStreet on December 11, 2025, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
