Value City Furniture’s parent company, American Signature, Inc. (ASI), has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware, the company announced this week. As part of the restructuring, the Value City Furniture location at 12055 Rockville Pike, located in the Montrose Crossing Shopping Center, is slated to close, according to USA Today.
Despite the Chapter 11 filing, ASI says Value City Furniture and American Signature Furniture stores and websites will remain open for now and continue fulfilling customer orders. The Rockville location is among several stores that had already begun store-closing sales prior to the filing and is offering “deep discounts” while inventory remains.
At this time, nearby Value City Furniture stores in Falls Church, VA, and Frederick, MD, are not slated to close, according to the company’s current store-closure listings.
ASI, which operates both Value City Furniture and American Signature Furniture, said it has initiated a court-supervised sale process under Section 363 of the U.S. Bankruptcy Code. The company expects to enter into a stalking-horse agreement with ASI Purchaser LLC to acquire most of the company’s assets, subject to court approval and a competitive auction expected within approximately 45 days.
“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,” said 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. Entering a court-supervised process will provide the best opportunity to maximize value.”
Morando added that the company is committed to serving customers, employees, and partners throughout the restructuring. Additional updates on store closures and the sale process are expected as ASI continues through the court-supervised proceedings.
