Bankrupt Value City could owe customers more than $57 million for orders placed but not delivered

Consumers have filed more than $57 million in claims for furniture they paid for but never received from Value City Furniture, as its parent company, American Signature Inc., winds down operations under Chapter 11 bankruptcy protection.

More than 36,000 U.S. customers of the Columbus, Ohio-based company have submitted claims for deposits on undelivered furniture and are still uncertain whether or when they will receive refunds, according to the St. Louis Business Journal.

As of February 4, reported claims had already surpassed $57 million, and that total is expected to rise as more customers step forward. The extent of the losses came to light during a Delaware bankruptcy court hearing, where Judge Kate Stickles approved the sale of the business to ASI Purchaser LLC, according to the outlet.

The claims largely stem from shoppers who paid deposits, or in full, for furniture and other items that were never delivered before stores began closing or liquidating inventory. As locations shut their doors, many customers were left without merchandise and with limited information about how to recover their money.

Jessica Reed of Elizabeth, Pennsylvania, bought nearly $1,500 in furniture from a closing Value City store, but her $400 ottoman never arrived. Despite promises of a refund, the store refused, leaving her to pursue the matter in court.

"It's a feeling of being deceived, just being lied to and just taken money from us that we work hard for that now is just gone," Reed told CBS Pittsburgh. "And I have nothing to show for it when we were promised we would get that back if the item didn't come."

The total of $57 million in claims reflects what consumers are seeking in refunds or settlements through the bankruptcy process, raising concerns about how much customers will ultimately be able to recoup. In large retail bankruptcies, consumer claims are typically considered unsecured, meaning shoppers could receive only a portion of what they are owed, or potentially nothing at all, depending on how remaining assets are distributed.

So far, no deadline has been set for customers to file claims, and consumers are being directed to submit documentation through the bankruptcy website as the case continues.

The Independent has contacted Value City, American Signature, Inc. and ASI Purchaser for comment.

As of last month, all 79 Value City Furniture stores were closing as American Signature Inc. liquidates its 89 nationwide locations following its November 2025 Chapter 11 bankruptcy filing.

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The mess at Value City Furniture is part of a bigger meltdown at American Signature Inc. What started as a plan to reorganize or sell the business has since spiraled into widespread store closures and liquidation, marking a pretty stunning collapse for a furniture chain that’s been around for decades.

ASI Purchaser, the sole bidder for American Signature Inc. is owned by the Schottenstein family, and leads other retailers including DSW and American Eagle Outfitters. Its bid faced objections from the U.S. Trustee and the committee of creditors, the Business Journal reports.

The initial $147.8 million deal with $83.1 million cash plus $64.7 million in assumed liabilities was later increased by $10.75 million through a settlement with creditors, with additional proceeds from property sales potentially shared.

Judge Stickles called the agreement the “highest and best” return given the lack of competing bids, saying the sale was negotiated in good faith, aided by an independent director and outside advisors.