Are Your Favorite Furniture Brands Shutting Their Doors For Good?

There's no denying that furniture is expensive, and seems to only be increasing in cost. Unfortunately, it's not just homeowners who are suffering from the price increases. Some companies are also beginning to struggle, leading to stores shutting down and even filing for bankruptcy. For example, two popular businesses are facing closures as the shared parent company goes through a Chapter 11 bankruptcy process. ASI (American Signature Inc.) owns two chains, known as Value City Furniture and American Signature Furniture. 

Bankruptcy is a scary term, but fairly common. There are several kinds, and ASI is going specifically for Chapter 11. This is a pretty standard option for companies, as it allows them to keep operating, at least in some capacity. In essence, it's a form of bankruptcy usually used if there is a chance to keep the business running. It's often done when companies are starting to struggle, but before they are too in debt. 

ASI is working to try and keep the stores open in some capacity. At the moment, it appears at least 31 of the 120 locations are closing their doors. There are potentially some markets that will lose all physical access. As they go through the process of bankruptcy, things might change, but at the moment, it appears the company is only downsizing, and not shutting down for good, thankfully. Though these two businesses are not known as being furniture stores with the cheapest couches, they do have a long history and many loyal clients.

As to why ASI is looking at bankruptcy, it seems that for a few years now, furniture sales have been decreasing. In fact, these stores are looking at a decrease of 0.08% in October of 2025, and 1.7% from last year. And, with a company like ASI, which has between $500 million and $1 billion in liabilities, and roughly $250 million specifically in debt, these decreases can hurt quite a bit.

People are more likely to buy a lot of new furniture for a house they are moving into, instead of one they already own. So when the housing market is looking good, so do furniture sales. Unfortunately, the reverse is also true. Inflation is another issue, making it harder to keep selling furniture at an affordable price — even when people are looking to cheaper ways to furnish their home. For example, Facebook Marketplace and Nextdoor are popular options to get slightly used modern furniture and decor that doesn't break the bank.

ASI isn't the only company starting to feel the strain. At Home and Conn's are just a couple of other companies that have had to shut down stores throughout 2025. Wayfair and Amazon tend to be the best places to get budget-friendly pieces of furniture that can also maximize your storage space, thanks to mainly being online, which also diminishes in-person shopping.