Furniture chain sets store closings, liquidation after bankruptcy

Industry Overview - The furniture industry is heavily reliant on a strong economy and a vibrant housing market, with consumer spending on furniture declining during economic uncertainty [1] - A slowdown in the housing market leads to decreased demand for new furniture, as fewer people are purchasing homes [2] Bankruptcy Details - American Signature Furniture and its Value City Furniture brand have filed for Chapter 11 bankruptcy due to a combination of declining sales, macroeconomic headwinds, housing market weakness, inflation, and increased operating costs [10] - The company operates approximately 120 stores across 17 U.S. states and employs around 3,000 people, having already initiated store closures and liquidation sales prior to filing [11] Sales and Market Trends - New single-family home sales dropped 13.7% in May 2025 and were 6.3% lower year-over-year, indicating weaker buyer demand [9] - Existing home sales fell 0.5% in April 2025 compared to the previous month and were down 2% year-over-year [9] - New listings decreased by 1.7% year-over-year, and pending sales were down 4.1%, with homes taking longer to sell [9] Company Strategy - The company plans to sell substantially all assets through a stalking-horse/Section 363 sale process, with a purchase agreement expected subject to court approval [11] - American Signature has secured approximately $50 million in debtor-in-possession financing to support ongoing operations during the bankruptcy process [11] Customer Impact - Stores and websites remain operational during the Chapter 11 process, continuing to serve customers while offering discounts [11][17] - Key dates for customers include a deadline for returns/exchanges on December 7, 2025, and a deadline for gift card usage by December 22, 2025 [14]