American Signature Inc. has moved to the Delaware bankruptcy court to sell off its assets under court supervision. The Columbus-based furniture retailer plans to continue operating during the process while developing a restructuring plan for unsecured creditors.
American Signature Inc. Seeks Chapter 11 Bankruptcy Protection
American Signature Inc. filed a voluntary bankruptcy petition in the U.S. Bankruptcy Court for the District of Delaware. The Ohio-based furniture retail business made the filing on November 22.
According to Businesswire, American Signature Inc. (ASI) has launched a sale process under Section 363 of the U.S. Bankruptcy Code. The furniture retail chain hopes to sell its assets within approximately 45 days, aimed at maximizing value for stakeholders. The process would be anchored by a stalking-horse agreement with ASI Purchaser LLC.
Once the Delaware bankruptcy court approves, ASI Purchaser LLC would purchase all of the Ohio-based furniture retailer’s assets and assume some of its liabilities.
As the parent company to American Signature Furniture and Value City Furniture, the business has been operating 119 stores, 4 distribution centers, and 3 manufacturing facilities. American Signature Inc. has more than 4,000 team members spread across 18 states.
Since 1948, the Columbus, Ohio-based business has been selling casual, modern, luxurious, and contemporary furniture. American Signature Inc. also offers a range of furniture for bedrooms, dining rooms, mattresses, living rooms, and more.
According to Pacer, the retailer initiated the proceedings on November 22. Attorney Laura Davis Jones from Pachulski, Stang, Ziehl & Jones LLP is offering legal representation to American Signature Inc. in the Delaware bankruptcy court. Judge J Kate Stickles is overseeing the case.
Businesswire reports that the Ohio-based furniture retailer has already obtained $50 million in debtor-in-possession (DIP) financing from Second Avenue Capital Partners LLC. Once the Delaware bankruptcy court approves the financing, the financing is expected to help the retailer maximize value through the sale process.
Bankruptcy Details
Attorney Laura Davis Jones filed the voluntary Chapter 11 petition on behalf of American Signature Inc. on November 22.
According to Businesswire, Pachulski Stang Ziehl & Jones LLP is the legal counsel for the furniture retailer in the latest case. BRG is the financial advisor, and SSG Capital Advisors is the investment banker.
While SB360 Capital Partners is helping with inventory sales, C Street Advisory Group is working as a strategic communications advisor. Reflect Advisors is the Independent Director in the case whose legal counsel is Goodwin Procter LLP.
Below are further details in the bankruptcy filing:
- Filing Date: November 22, 2025
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Delaware
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 1:25-bk-12105
- Reason for Filing: Sell assets and continue operations while sharing a plan to address creditors under court supervision
Moving further in the bankruptcy process on November 22, the furniture retail chain requested a joint administration motion of debtors. Through this, Chapter 11 filings by both the parent company from Ohio and its related companies could be handled together. The retailer requested related relief needed for the joint administration.
On November 23, attorney Laura Davis Jones filed an updated list of the 30 largest unsecured lenders of American Signature Inc. That same day, the company applied to hire Kurtzman Carson Consultants, LLC/Verita Global as the Claims and Noticing Agent in the latest case.
Further, Rudolph Morando, a representative of the Ohio-based furniture retail chain, submitted an Affidavit in support of the First Day Motion.
On November 24, attorney Laura Davis Jones submitted a motion to file a consolidated list of creditors of American Signature Inc. The attorney requested that the Delaware bankruptcy court hide information that was commercially sensitive or personally identifiable.
According to Pacer, the third day of the bankruptcy proceedings was marked with several motion filings by the Ohio-based furniture retailer. These included motions to pay prepetition employee wages, compensation, and benefits.
Apart from these, attorney Laura Davis Jones requested the Delaware bankruptcy court to continue operation of the cash management system, maintain existing business forms, and more. American Signature Inc. also submitted multiple motions requesting that the utility providers stop changing, refusing, or discontinuing services.
To keep the operations going, the furniture retail chain submitted motions that allowed American Signature Inc. to pay fees and taxes that it was owed before the filing.
Following this, J. Scott Victor represented American Signature Inc. through a declaration that supported the motion of the debtors for entry of interim and final orders under different bankruptcy code sections and rules. The furniture retailer’s representative also requested approval to continue operating its cash-management system.
American Signature Inc. asked the Delaware bankruptcy court for permission to reject a lease/executory contract. It then filed a motion to approve the motion for entry of interim and final orders that allowed the furniture retailer to assume the consulting agreement and conduct store closing sales.
As the furniture retailer moves ahead for the Section 363 auction, the sale of American Signature Inc.’s assets will determine its next steps.
