64-year-old furniture store franchisee files Chapter 11 bankruptcy

Industry Overview - The furniture retail industry is experiencing significant financial distress due to a slow residential real estate market, rising labor and product costs driven by inflation, increased tariff rates since April, and lingering effects from the Covid pandemic [1] - Several small and mid-size furniture chains have filed for bankruptcy protection this year, including Landmark Furniture parent Brenmark Inc., Walker Edison Furniture Company, American Mattress, and 5th Avenue Furniture [1] Company-Specific Developments - American Signature Inc., a 77-year-old furniture retailer operating 120 stores and employing 3,200 people, filed for Chapter 11 protection on Nov 22, seeking to reorganize its business and sell its assets to ASI Purchaser LLC after closing several stores [2] - Buddy's Home Furnishings franchisee, Buddy Mac Holdings LLC, along with 48 affiliates, filed for Chapter 11 bankruptcy protection on Dec 4 to halt foreclosure sales and either reorganize or seek a going-concern sale of its assets [4][5] - Buddy Mac Holdings listed assets and liabilities between $10 million and $50 million in its bankruptcy petition, with significant unsecured creditors including Buddy's Newco LLC and O'Rourke Sales Company, each owed over $1 million [6] - The company owed $12.6 million on a secured loan that originated in 2019, with an original principal balance of $26 million, which matured on Aug 31 and was sold to Phonix RBS LLC on Sept 2 [7] Bankruptcy Filings Timeline - American Signature, Inc. filed on Nov 22 - Landmark Furniture parent Brenmark Inc. filed on Nov 9 - Walker Edison Furniture Company filed on Aug 28 - American Mattress filed on July 6 - 5th Avenue Furniture filed on June 6, 2025 [8]