American Signature Inc., a prominent furniture retailer based in Columbus, Ohio, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on November 22, 2025. The company aims to sell its assets under court supervision while continuing operations and developing a restructuring plan for its unsecured creditors.
The filing initiates a sale process under Section 363 of the U.S. Bankruptcy Code, allowing American Signature Inc. to maximize the value of its assets. The company has partnered with ASI Purchaser LLC, which is expected to acquire all its assets and assume certain liabilities once approved by the Delaware bankruptcy court. The furniture chain operates 119 stores, four distribution centers, and three manufacturing facilities across 18 states, employing over 4,000 team members.
Since its establishment in 1948, American Signature Inc. has provided a diverse range of furniture products, including modern, casual, and luxurious styles for bedrooms, dining rooms, and living areas. As reported by Businesswire, the company has secured $50 million in debtor-in-possession (DIP) financing from Second Avenue Capital Partners LLC, which is anticipated to support its asset sale and operational continuity during the bankruptcy process.
Details of the Bankruptcy Filing
The voluntary petition, filed by attorney Laura Davis Jones from Pachulski Stang Ziehl & Jones LLP, outlines the company’s intentions to address its financial challenges while maintaining its business operations. The case is overseen by Judge J. Kate Stickles, who will evaluate the proposed restructuring plan and asset sale.
As part of the bankruptcy proceedings, American Signature Inc. has requested a joint administration motion, allowing the parent company and its related entities to handle their filings collectively. This approach aims to streamline the process and ensure efficient management of the company’s financial obligations.
On November 23, attorney Laura Davis Jones submitted an updated list of the 30 largest unsecured lenders to the court, alongside an application to hire Kurtzman Carson Consultants, LLC/Verita Global as the Claims and Noticing Agent. Additionally, company representatives have filed affidavits and motions to support various operational needs during the bankruptcy period.
Operational Continuity Amid Restructuring
To sustain its operations, American Signature Inc. has filed motions seeking approval for several critical measures. These include requests to continue paying employee wages, benefits, and taxes owed before the filing. The company has also sought permission from the court to maintain its existing cash management system and business forms to facilitate ongoing transactions.
Furthermore, American Signature Inc. aims to prevent utility providers from altering or discontinuing services during the proceedings. The retailer’s actions reflect its commitment to preserving its workforce and business operations while navigating the challenges of bankruptcy.
As the company moves forward with the Section 363 auction process, the outcome of the asset sale will significantly shape its future. The strategic decisions made in the coming weeks will determine how American Signature Inc. emerges from this restructuring effort and its ability to continue serving customers with quality furniture products.
