Columbus, Ohio — Home furnishings retailer American Signature Inc. (ASI) has filed for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware.
Based in Columbus, Ohio, American Signature was founded in 1948 and is the parent company to Value City Furniture and American Signature Furniture, which have more than 120 stores open across 17 states.
ASI expects to enter into a stalking horse asset purchase agreement under which, subject to court approval, ASI Purchaser LLC will acquire substantially all of the company’s assets and assume certain related liabilities. As part of the proceedings, the company also plans to lay off roughly 326 employees and close its Columbus headquarters.
Value City Furniture and American Signature Furniture stores and websites are expected to remain open and will continue to fulfill customer orders and provide ongoing customer service 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.
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 several customary motions seeking 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.