If you’ve seen headlines about Value City Furniture closing and aren’t sure what’s true, here’s the short answer: yes, all stores are permanently closing. This isn’t a rumor or a partial shutdown. The entire chain is done.
This article explains what happened, when stores are closing, and — most importantly — what you should do if you’re a customer waiting on an order, holding a gift card, or thinking about shopping the liquidation sales.
Value City Furniture Is Closing All Stores for Good
The parent company, American Signature Inc., filed for Chapter 11 bankruptcy in November 2025. At first, the company framed it as a restructuring attempt. That didn’t work out.
In January 2026, a court approved going-out-of-business sales at all remaining locations. That covers 79 Value City Furniture stores and 10 American Signature Furniture stores — 89 locations in total, though some counts put the number closer to 94.
There is no planned relaunch, no online-only pivot, and no reported buyer stepping in to keep the brand running. When the inventory sells out, the stores close for good.
How the Closure Unfolded — From Bankruptcy to Full Shutdown
The story changed significantly between November 2025 and January 2026, which is why some headlines look different depending on when you read them.
Here’s the basic timeline:
- November 2025: American Signature Inc. files for Chapter 11 bankruptcy. The company calls it a restructuring.
- Late 2025: Early reports say the company plans to close around 33 stores while keeping others open and running the website. This is the “closing dozens of stores” phase.
- January 2026: The restructuring plan falls apart. A court approves full liquidation of all remaining stores. Going-out-of-business sales begin January 10, 2026.
If you read an older article saying “only some stores are closing,” that was accurate at the time. The situation changed fast. As of early 2026, every single location is shutting down.
Stores are affected across at least 13 states, including Ohio, Michigan, Illinois, Pennsylvania, Virginia, Maryland, Indiana, and others. There is no set final closing date — stores will shut when their inventory runs out.
What Happens to Your Order, Refund, or Gift Card
This is where things get complicated, and it’s important to be honest: there are no easy answers here.
As of early February 2026, more than 36,000 customers had filed claims for furniture they paid for but never received. The total value of those claims exceeded $57 million. That’s a lot of people in a difficult situation.
What “unsecured creditor” means for you
When a company goes through bankruptcy, customers who are owed money or goods are typically classified as unsecured creditors. That means you go into a queue with other claimants. You might get some of your money back. You might not get all of it. It depends on how much the bankruptcy estate can pay out after secured debts are settled first.
No one can promise you a full refund. Anyone who tells you otherwise is guessing.
What to do if you have an unpaid order
- Contact the store directly while it’s still open. Ask about your specific order. Some stores may still have items in stock or scheduled deliveries in progress.
- File a claim with Verita Global. This is the official claims administrator for the American Signature bankruptcy. Filing a claim is how you formally request money owed to you through the bankruptcy process.
- Dispute the charge with your credit card company. If you paid by credit card, this is often the fastest route to getting money back. Contact your card issuer and explain that the merchant filed for bankruptcy and didn’t deliver your order.
- Gather all documentation. Keep your receipt, order confirmation, any delivery estimates, and all written communication. You’ll need these for both the claims process and any credit card dispute.
For example: if you paid $1,500 for a sofa in October 2025 and never received it, start by calling or visiting your store to check on the order. Then file a claim through Verita Global and call your credit card company to open a dispute. Do all three — don’t wait to see if one works before trying the others.
What about gift cards and store credits?
Gift cards are not being accepted at liquidation sales. Store credits are unlikely to be honored either. If you have a gift card, you can try to file it as part of a bankruptcy claim, but recovery is not guaranteed.
What to Know Before Buying During the Liquidation Sale
The discounts are real. Reports confirm markdowns of up to 50% on furniture, mattresses, rugs, lighting, and decor. For some shoppers, that’s a worthwhile deal. But there are real risks worth understanding before you buy.
The rules are different from a normal sale
Think of a liquidation sale less like a Black Friday promotion and more like an estate sale. The goal isn’t to build customer loyalty — it’s to clear out everything as fast as possible. That changes the terms significantly.
- All sales are final. No returns, no exchanges, no exceptions.
- Gift cards are not accepted. Cash, debit, or credit only.
- Warranties on new purchases may be offered during liquidation, but coverage could be limited and short-term. Ask specifically before you buy.
- Delivery logistics may be uncertain. If an item isn’t on the floor and ready to go, ask very direct questions about when and how it will be delivered — and get it in writing.
How to shop the liquidation wisely
If you’re considering buying, focus on items you can take home the same day or that are clearly in stock. Inspect the piece carefully for damage, since there’s no recourse after you pay. Floor models may have wear, scratches, or missing parts.
Compare the discounted price to what similar items cost at other retailers right now. A 40% discount on a poorly made piece isn’t necessarily a better deal than full price on something well-built elsewhere.
Why Did Value City Furniture Fail After 78 Years?
American Signature executives pointed to a significant decline in the housing market as a key driver. That’s not just a talking point — furniture sales are closely tied to home sales. When fewer people buy or move into homes, they buy less furniture. Period.
Add to that rising interest rates, cautious consumer spending, high logistics costs, and growing competition from online retailers, and the pressure on mid-market physical furniture stores becomes severe.
Value City wasn’t alone in struggling. Several large furniture chains have faced bankruptcy or significant cutbacks in recent years for similar reasons. The business model of large showrooms with high overhead in expensive retail locations is harder to sustain when foot traffic drops and customers shift to buying online.
For more coverage on business closures and retail industry news, visit OnBizDaily.
The Bottom Line
Value City Furniture is not partially closing or restructuring. All stores are going out of business. The liquidation sales are already underway, and stores will close permanently once inventory is gone.
If you have an existing order, don’t wait. Contact the store, file a bankruptcy claim with Verita Global, and call your credit card company if you paid that way. Keep every piece of documentation you have.
If you’re considering shopping the sales, go in with clear expectations: final sales, no gift cards, uncertain warranty coverage, and no returns. At the right price and for the right item, it can still be a good deal — just know what you’re agreeing to before you hand over your money.
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