The parent company of Value City Furniture has filed for Chapter 11 bankruptcy.
American Signature said in a statement that Value City and American Signature furniture stores and websites will remain open at this time to fulfill customers orders.
In a statement, the Columbus-based company said it will begin a sales process. It hopes for a competitive auction within 45 days to "elicit higher value for the benefit of all stakeholders."
“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," Rudy Morando, American Signature's co-chief restructuring officer, said in the statement.
"Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value. We deeply appreciate our team members, customers, and partners and are determined to serve them throughout this process,” Morando said.
The company filed for bankruptcy Saturday in U.S. Bankruptcy Court in the state of Delaware. Chapter 11 Bankruptcy allows businesses to continue to operate while restructuring debt in hopes of becoming profitable again.
The statement said American Signature has secured about $50 million in financing from Second Avenue Capital Partners LLC. Once the court approves it, the financing will support operations through the Chapter 11 cases and sale process.
The furniture retailer was founded in 1948.