Global Furniture Alert: Major U.S. Chain Files for Bankruptcy & Closes Stores — How It Affects the Industry

In a major shake-up for the global furniture retail scene, American Signature Inc. — the parent company of Value City Furniture — has filed for Chapter 11 bankruptcy and announced the closure of more than 30 stores across the United States. TradingView+2Retail Dive+2

The move is part of a restructure triggered by a steep decline in demand, rising costs, and a slump in the housing market — a trend echoing across many countries in the post-pandemic era. TradingView+1

What Happened

• American Signature’s financial filings show its net sales dropped sharply — from about USD 1.1 billion in 2023 to approximately USD 803 million in 2025. Reuters+1
• The company has incurred heavy losses, prompting closure of 33 underperforming stores while initiating liquidation sales at affected locations. Retail Dive+1
• Despite the restructuring, the company says its remaining stores and online shopping sites remain operational — but the closures and liquidation sales reflect broader industry stress. Reuters+1

What This Means for the Global Furniture Industry

This development demonstrates how global economic factors — inflation, rising materials and shipping costs, housing slowdowns — can swiftly impact even large, long-established furniture retailers.

For manufacturers, suppliers, and retailers worldwide, it’s a warning signal: the demand for furniture is volatile and can shrink dramatically in an economic downturn. This could lead to oversupply, pressure on prices, and greater competition among furniture exporters and producers.

For businesses operating in export markets or supplying to large retail chains: “It’s time for risk-management.” Diversifying distribution channels, focusing on quality and sustainability, and catering to changing consumer demands are no longer optional.

 What Furniture Businesses Should Do Now

• Review your exposure — If you supply large retailers or rely on big-box chains, evaluate risk and demand viability.
• Strengthen your value proposition — Emphasize craftsmanship, sustainability, customization, and quality to survive market downturns.
• Diversify markets and sales channels — Don’t rely solely on a few large buyers or a single region; expand to new geographies or retail formats.
• Stay connected and informed — Global shifts may impact you sooner than you think — watch demand trends and supply-chain changes closely.

 A Call to Furniture Community: Be Prepared & Stay Alert

The bankruptcy of American Signature — owner to a well-known furniture brand — sends shockwaves through the global furniture supply and retail chain. It’s time for manufacturers, retailers, designers, exporters, and trade partners everywhere to reassess their strategies, diversify risk, and build resilience.

Whether you’re a seasoned exporter or a small-scale artisan, this moment underscores how quickly tides can turn — and how important it is to stay flexible.

Stay connected with us at The Furniture Times for more updates, analysis, and actionable insights to help your business survive and thrive in a changing world.