American Signature Files for Chapter 11 Bankruptcy Protection

Overall commercial bankruptcy filings were up by 7 percent in October year over year.

A person arrives at the U.S. District Bankruptcy Court for the Southern District of New York in Manhattan, on Jan. 9, 2020. Brendan McDermid/Reuters

Home furnishing retailer American Signature Inc. has filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the District of Delaware and is pursuing a sale of its assets, the company said in a Nov. 23 statement.

According to the petition filed on Nov. 22, American Signature owes money to an estimated 1,000 to 5,000 creditors and has assets in a range of $100 million to $500 million, with liabilities estimated to be between $500 million and $1 billion.

A Nov. 11 filing made by co-chief restructuring officer Rudolph Morando said that American Signature had experienced opportunistic growth during the COVID-19 pandemic but has since faced “significantly decreased sales volume” over the past year.

The company also said there are challenges of “heightened cost pressures due to rising inflation, elevated interest rates, newly established tariffs, and a post-pandemic slowdown in consumer demand for furniture.”

American Signature operates more than 120 stores across 17 states, employing about 3,000 workers. Founded in 1948, the company is headquartered in Ohio.

American Signature said it has initiated a sales process for a competitive auction to get the highest value possible for shareholders. It expects to enter into an asset purchase agreement with a buyer, who is projected to acquire substantially all of its assets as well as assume certain liabilities.

The two brands under American Signature, Value City Furniture and American Signature Furniture, will continue running their stores and websites during the process, fulfilling customer orders and offering related services.

The retailer said it has secured about $50 million in funding to support its operations during the bankruptcy proceedings.

Before filing for bankruptcy, certain Value City Furniture and American Signature Furniture stores had already kicked off closing sales, offering deep discounts.

American Signature’s bankruptcy filing comes as overall commercial bankruptcy filings in the United States have risen in recent times.

In a Nov. 5 statement, the American Bankruptcy Institute (ABI) said there were 2,820 commercial bankruptcy filings made in October 2025, up by 7 percent from October 2024.

Commercial Chapter 11 filings were up 11 percent year over year, it said.

“Persistent economic headwinds—including higher prices, tighter lending conditions, and ongoing geopolitical uncertainty—continue to weigh on financially distressed consumers and businesses,” ABI Executive Director Amy Quackenboss said. “Bankruptcy remains an indispensable tool to help debt-burdened families and businesses achieve a financial fresh start.”

The Trump administration has taken steps to ease the burdens on business owners.

In a Nov. 19 statement, the Small Business Administration (SBA) announced that its Small Business Investment Company (SBIC) program ended fiscal year 2025 with the “largest level of investment capital in the program’s history.”

Small Business Administration Administrator Kelly Loeffler speaks during a press conference in Washington on Oct. 27, 2025. Madalina Kilroy/The Epoch Times

Under the initiative, private equity and debt investment funds can get access to low-cost, government-backed capital that can be used to increase their investments in small businesses and startups.

In 2025, the funding under the SBIC program hit $53 billion, compared to $46 billion in fiscal year 2024, the agency said.

“With a record year for SBIC licenses, leverage, and activity, it’s clear that the private sector is responding to the Trump Administration’s historic tax cuts and deregulation to invest for the long-term,” SBA Administrator Kelly Loeffler said. “And with the private-public partnership of SBA now reaching a combined $100 billion of impact for the first time in history across lending, SBIC, and SBIR [Small Business Innovation Research], this Trump-era rocket fuel will define American strength and security for the next generation.”