American Signature Furniture Bankruptcy: What U.S. Shoppers Need to Know in 2025–2026
American Signature Furniture has been a well-known furniture retailer in the United States for decades. Thousands of families have purchased living room sets, bedroom furniture, dining tables, mattresses, and home décor from their local stores. But recently, the company made major financial headlines when it filed for Chapter 11 bankruptcy. This has caused confusion and worry among shoppers who have pending orders, purchased warranties, or planned to buy furniture soon.
Many people are now asking what this bankruptcy means, whether stores will close, and if their delivery or warranty is still safe. This blog will explain everything in simple terms so you know exactly what to expect over the next few months.
American Signature Furniture chose Chapter 11 bankruptcy, which means they are not closing permanently. Instead, they are restructuring their business so they can continue operating. The goal is to reduce debt, improve profitability, and modernize the shopping experience. Stores are still open, furniture is still being sold, and customers can continue purchasing — but some changes are expected.
Why Did American Signature Furniture File Bankruptcy?
The company has been facing financial challenges for years. Several key issues pushed them into bankruptcy:
• Higher costs for supplies, materials, and deliveries
• Less foot traffic in physical stores
• More competition from online retailers
• Customers spending less due to inflation
• Large store operating expenses and rising debt
Shopping behavior has changed. Many Americans now prefer to buy furniture online, expecting fast shipping, better deals, and flexible return policies. Companies like Amazon, Wayfair, and Ikea adapted quickly to this shift. American Signature Furniture struggled to keep up with that new demand.
Filing for Chapter 11 gives them a chance to reorganize and stay in business instead of shutting down completely.
Are Stores Closing?
Some stores may close permanently, but the company plans to keep many locations open. The stores that bring in strong sales and have good customer traffic will likely stay. Stores that are expensive to operate or located in slower markets may shut down later this year.
If your closest store closes, you can still shop online and receive delivery, but it may require longer travel for in-person customer service.
Will Orders Still Be Delivered?
For customers who already purchased furniture and are waiting for delivery, this is the biggest concern. The company has confirmed that most orders will still be delivered. But because of the restructuring process, some orders may face delays.
Smart steps you should take:
• Save your receipt and confirmation emails
• Contact customer service if delivery date changes
• Track your order status regularly
• Verify that the product is in stock before purchasing more
If an order becomes canceled by the company, refunds should still be processed normally. Paying with a credit card is safer because credit card companies provide consumer protection in case of disputes.
What About Warranties and Protection Plans?
Many shoppers purchased extended warranties for expensive couches, recliners, or mattresses. The company has said warranties remain valid under Chapter 11. However, some changes could happen:
• Warranty claims may be handled online instead of in-store
• Repair technician availability could vary by location
• Processing times may be slower due to restructuring
To protect yourself, keep digital copies of:
• Warranty paperwork
• Product model details
• Original purchase receipt
If a store near you closes, the warranty still applies nationwide.
Will There Be Discounts and Clearance Sales?
Bankruptcy often leads to major storewide sales because companies need cash quickly. That means shoppers might find huge discounts on:
• Floor models
• Clearance inventory
• Overstocked items
• Discontinued products
If you love furniture deals, now is a great time to look — but shop smart. Make sure items you buy include delivery and clear warranty information before paying.
How Employees Are Affected
American Signature Furniture employs thousands across its stores and warehouses. Some workers may lose hours or jobs if their store closes. Others may be transferred to nearby locations. Customer service delays may occur because fewer employees are available during restructuring.
Supporting local workers while shopping responsibly can make a difference during this transition.
Is American Signature Furniture Still a Good Place to Buy?
Yes — as long as shoppers stay informed and take precautions. The company still offers popular styles at affordable prices, and the bankruptcy process is designed to help them improve, not disappear.
Here’s how to shop with confidence:
• Confirm product availability before paying
• Ask for delivery timelines in writing
• Use a major credit card for extra protection
• Keep all receipts and warranty information
• Check bankruptcy updates regularly
Customers who follow these steps can still enjoy a safe shopping experience.
What Will Change for the Company?
American Signature Furniture wants to modernize operations. That may include:
• Better online shopping tools
• Faster delivery systems
• Improved inventory tracking
• Updated store layouts
• More focus on digital customer service
The brand hopes these upgrades will help them compete with large online retailers and become stronger in the future.
What Should Customers Do Now?
Here are the best tips to protect your money and furniture purchases during the bankruptcy period:
• Stay updated on store closure announcements
• Ask questions before completing purchase
• Take screenshots of all digital receipts
• Keep communication records with customer service
• Make sure warranty providers are still active
• If unsure, contact your credit card issuer for guidance
Being proactive prevents problems later.
Will American Signature Furniture Survive This?
The company believes it can come out stronger after restructuring. Other well-known brands like Marvel, Delta Airlines, and Ford filed Chapter 11 and returned to success. So there is a good chance American Signature Furniture will remain a major furniture retailer in the U.S.
But the success of the restructuring depends on better business decisions, improved customer experience, and a stronger online presence.
Furniture shopping is one of the biggest home investments families make. When a favorite retail chain files bankruptcy, it can feel stressful and uncertain. However, Chapter 11 allows a company to fix problems and continue serving customers.
Shoppers should not panic — but they should be careful. Make informed decisions, protect your purchases, and stay aware of business updates. This period may even be a great time to get a good deal on furniture for your home.
American Signature Furniture has been part of many American families for years, and the goal is to keep that legacy alive while improving quality, delivery, and affordability.
If things go as planned, customers may soon enjoy a better shopping experience and stronger value than before.
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