Value City Furniture owner files for bankruptcy citing housing crisis

Core Insights - American Signature Inc. experienced a significant sales increase of 37% in 2021, driven by pandemic-related economic stimulus and consumer investment in home spaces, but this growth has since reversed [3] - The company has faced a severe decline in sales due to a significant downturn in the housing market, rising inflation, elevated interest rates, new tariffs, and a post-pandemic slowdown in furniture demand [4] Company Overview - American Signature Inc., owned by Schottenstein Stores Corp., filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, citing severe housing market declines as a primary reason for decreased sales [6] - The company operates over 120 stores and employs approximately 3,000 people, and has commenced liquidation sales prior to filing for bankruptcy, planning to close 33 stores [6] Financial Performance - The company reported a net sales drop of nearly $150 million from 2024 to 2025, with a net operating loss increase of $52 million during the same period [6] - Prior to the bankruptcy filing, equity holders provided unsecured loans totaling about $51 million, with $24 million still outstanding, and an affiliate entered into an asset-based lending facility for an additional $50 million in liquidity [5]