American Signature, Inc. is a regional furniture retailer founded in 1948, operating 120+ stores under the Value City Furniture and American Signature Furniture brands across 17 states in the Eastern and Midwestern United States, employing approximately 3,000 workers. The Columbus, Ohio-based company is wholly owned by Schottenstein Stores Corporation and ultimately the Schottenstein family. American Signature filed for Chapter 11 protection on November 22, 2025 in Delaware (Case No. 25-12105) due to a declining retail sales environment, increased competition from online retailers, and supply chain challenges. At filing, the company carried approximately $117 million in total funded secured debt, comprising a $39.2 million prepetition ABL facility with Second Avenue Capital Partners (a Schottenstein family affiliate), a $54.1 million term loan with PNC Bank, and $24 million in letters of credit. Additionally, the Debtors have approximately $236 million in general unsecured claims, with top creditors including furniture vendors MAN WAH MCO ($14.6M), Targetcast LLC ($12.6M), and H317 Logistics ($5M). The Debtors obtained a $50 million DIP facility from Second Avenue Capital Partners at SOFR + 6.20% with a full roll-up of the prepetition ABL. A 363 sale process is underway with ASI Purchaser, LLC (a Schottenstein family entity) serving as stalking horse bidder with a $147.9 million bid, with a sale hearing scheduled for February 4, 2026.
