Bankruptcy of Value City Furniture: What Happened, What It Means, and What Customers Should Know
The long-time furniture retailer Value City Furniture and its parent company American Signature, Inc. filed for Chapter 11 bankruptcy protection in late 2025, triggering store closures, liquidation sales, and thousands of consumer claims for undelivered orders.
📉 Why Value City Furniture Declared Bankruptcy
In November 2025, American Signature Inc. — the Columbus, Ohio-based parent of Value City and American Signature Furniture — filed voluntary petitions for Chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware. The goal was to reorganize overwhelming debt, conduct a sale process, and continue operations under court supervision.
At the time of filing, the company reported:
a significant decline in net sales and rising operating losses,
hundreds of millions of dollars in liabilities,
and market challenges in the home furnishings sector.
🛍️ What Happened After the Bankruptcy Filing
1. Going-Out-of-Business Sales
Although the Chapter 11 filing initially allowed stores to remain open and fulfill existing orders, the sale process failed to attract competing buyers. As a result, the bankruptcy court approved liquidation and chain-wide going-out-of-business sales at all locations.
Across the U.S., all 79 Value City Furniture stores and 10 American Signature Furniture stores began liquidation operations, with discounts of up to 50 % off furnishings, décor, mattresses, and more.
2. Store Closures Nationwide
The company has closed dozens of locations nationwide as part of its bankruptcy restructuring and eventual liquidation. Stores in states such as Michigan, Indiana, and elsewhere have closed or begun liquidation sales.
3. Customer Refund Claims
One of the most significant issues arising from the bankruptcy is undelivered merchandise. More than 36,000 customers have filed claims worth over $57 million for furniture they paid for but never received before stores shut down.
Customers who placed deposits or full payments are now unsecured creditors in the bankruptcy process — meaning they may receive only a portion of their money back, or possibly nothing, depending on asset distributions.
4. Frustration and Legal Uncertainty
Many shoppers have expressed frustration online and in local news reports about locked store doors, lost money, and uncertainty over refunds or deliveries. Some customers are pursuing chargebacks with their credit card companies or filing claims through the bankruptcy process.
🧠 What Bankruptcy Means for Customers
If you purchased furniture that was not delivered:
You must file a claim in the bankruptcy case as an unsecured creditor to seek recovery on deposits or payments.
Refunds depend on the remaining estate assets — unsecured claims are often paid only partially and late in the bankruptcy process.
Credit card disputes (chargebacks) may help consumers recover funds separately, but results vary based on terms and timing. Many affected shoppers have reported pursuing this strategy as a fallback.
🪑 Why the Bankruptcy Happened
Analysts and court filings suggest multiple factors led to the collapse, including:
declining net sales and weakening demand in the home furnishings market,
macroeconomic pressures such as inflation and tariff impacts,
and an inability to secure a successful sale or viable reorganization plan.
Even before full liquidation, plans to close underperforming stores had been underway as part of restructuring efforts.
🛑 What This Means for Retail and the Furniture Sector
The Value City Furniture bankruptcy reflects broader challenges facing mid-tier retailers in the age of e-commerce, shifting customer preferences, and economic uncertainty. Local news discussions note that the collapse of legacy furniture chains may signal deeper shifts in traditional brick-and-mortar retail.
📅 What Customers Should Do Now
If you are a customer affected by Value City’s bankruptcy:
Submit a formal proof of claim in the bankruptcy case if you paid for products not delivered.
Keep documentation such as receipts, contracts, order confirmations, and payment records.
Consult your credit card issuer about possible chargebacks for undelivered purchases.
Monitor court filings and deadlines for the bankruptcy case to ensure your claim is included.
🧾 Final Take
The bankruptcy and liquidation of Value City Furniture mark the end of an era for a nearly 80-year-old furniture chain. While going-out-of-business sales offer discounts for shoppers, many customers face uncertainty over refunds and undelivered items. The case demonstrates how retail bankruptcies can leave consumers in vulnerable positions when companies wind down operations.