Columbus, Ohio — American Signature, Inc. (ASI), one of the nation’s leading home furnishings retailers and the parent company of Value City Furniture and American Signature Furniture, has filed voluntary petitions for chapter 11 relief in the United States Bankruptcy Court for the District of Delaware.
ASI expects to enter into a stalking horse asset purchase agreement with ASI Purchaser LLC under which, subject to court approval, ASI Purchaser LLC will acquire substantially all of the company’s assets and assume certain related liabilities.
Value City Furniture and American Signature Furniture stores and websites remain open at this time and will continue to fulfill customer orders and provide ongoing customer service to the best of its ability throughout the court-supervised process. Prior to the chapter 11 filing, certain Value City Furniture and American Signature Furniture stores commenced store closing sales and are offering deep discounts while merchandise lasts.
“For nearly 75 years, American Signature has served as a family-owned furniture destination that communities could rely on to provide style, quality, and value,” says Rudy Morando, co-chief restructuring officer for ASI. “In the face of the ongoing macroeconomic headwinds that have impacted the entire home furnishing industry, the company has carefully evaluated its options to assess the best path forward in the current operating environment. Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value. We deeply appreciate our team members, customers and partners and are determined to serve them throughout this process.”
ASI has secured approximately $50 million in debtor-in-possession financing from Second Avenue Capital Partners LLC. Subject to court approval, this financing will support certain operations and the company’s efforts to maximize value through the chapter 11 cases and sale process.
Additionally, ASI is filing a number of customary motions seeking, among other things, authorization to continue payment of employee wages and benefits, maintain certain customer programs and satisfy post-petition obligations to vendors and partners. The company expects to receive Court approval for these requests.
For more information, visit https://www.veritaglobal.net/americansignature.
Founded in 1948, American Signature, Inc. is a family-owned and operated furniture retailer based in Columbus, Ohio. It is the parent company of Value City Furniture and American Signature Furniture, with stores across the U.S. For more information, visit www.americansignaturefurniture.com.
SOURCE: American Signature, Inc.