by COLUMBUS, Ohio — Retailer American Signature, the parent company of American Signature Furniture and Value City, has filed for Chapter 11 bankruptcy protection, marketing the latest victim to an economy that largely hasn’t supported the furniture industry since the end of the pandemic.
The company said that it has begun 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.” It also said it expects to enter into a stalking horse asset purchase agreement (the “APA”) with ASI Purchaser LLC. Subject to court approval ASI Purchaser LLC would acquire substantially all of the Company’s assets and assume certain related liabilities.
The company also said that Value City Furniture and American Signature Furniture stores and websites currently remain open and will continue “to fulfill customer orders and provide ongoing customer service to the best of its ability throughout the court-supervised process.”
“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 ASI. “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 added that it has secured about $50 million in debtor-in-possession (“DIP”) financing from Second Avenue Capital Partners LLC (“Second Avenue” or “SACP”). Subject to Court approval, “this financing will support certain operations and the Company’s efforts to maximize value through the chapter 11 cases and sale process.”
ASI also is filing a number of customary motions seeking, among other things, authorization to continue payment of employee wages and benefits, maintain certain customer programs, and satisfy post-petition obligations to vendors and partners. The company said it expects to receive court approval for these requests.
In its Nov. 22 filing made in United States Bankruptcy Court for the District of Delaware, the company listed liabilities ranging from more than $500 million to $1 billion, and assets of just over $100 million to $500 million.
The filing also listed between 1,000 and 5,000 creditors.
The debtors listed in the filing include American Signature, Inc.; American Signature Home Inc.; American Signature USA Inc.; ASI Pure Promise Insurance LLC; ASI Elston LLC; ASI – LaPorte LLC; ASI Polaris LLC; ASI Thomasville LLC and American Signature Woodbridge LLC.
The filing lists $80,250,676 in claims from the top 30 unsecured creditors in the bankruptcy.
They are as follows:
- Man Wah – $14,569,745
- TargetCast LLC – $12,556,980
- H317 Logistics – $4,975,800
- Riverside Furniture Corp. – $3,992,020
- Dickson Furniture International – 3,912,148
- Holland House – $3,160,633
- Najarian Furniture – $3,004,962
- Magnussen Home Furnishings Inc. – $2,965,709
- Happy Furniture (Vietnam) Co. Ltd. – $2,306,706
- Everest Technologies – $2,135,777
- LFN Ltd. – 2,045,758
- Sealy Mattress Manufacturing – $2,016,175
- US Transport Inc. – $1,917,111
- Mediterranean Shipping Company – $1,655,777
- Manhattan Associates Inc. – $1,611, 364
- Tempur-Pedic North America LLC – $1,601,364
- Steve Silver Company – $1,586,773
- CT Mattress Brother Co. Ltd. – $1,248,015
- Mellow River Inc./HH2 Home – $1,245,948
- Palmetto Home – $1,214,786
- Kuka (HK) Trading Co. Ltd. – $1,210,036
- Rapid Response Inc. – $1,202,867
- Sherwood Southeast LLC – $1,194,227
- Ashley Holdings Fl Inc. – $1,170,494
- Intercon Inc. – $1,142,267
- IdeaItalia Contemporary Furniture Corp. – $1,104,998
- Kyndryl Inc. – $994,452
- Vogue Home LLC – $895,480
- Home Meridian Group LLC – $809,945
- Zim Integrated Shipping- $802,399 American Signature was listed at No. 18 on Home News Now’s 125 Furniture & Bedding Retailers, with estimated sales of $1.07 billion in 2024. It operated 123 stores in 2024 according to the ranking.
