Commences court-supervised sale process to effectuate value maximizing transaction and expects to enter into stalking horse asset purchase agreement

Value City Furniture and American Signature Furniture stores and websites remain open at this time, providing customers with style, quality, and value

Customers can benefit from deep Black Friday discounts on home furnishings across store locations and online

COLUMBUS, Ohio--(BUSINESS WIRE)--

American Signature, Inc. (“ASI” or the “Company”), one of the nation's leading home furnishings retailers and the parent company of Value City Furniture and American Signature Furniture, today announced it has filed voluntary petitions for chapter 11 relief in the United States Bankruptcy Court for the District of Delaware (the “Court”).

In order to maximize value, the Company has commenced a sale process pursuant to Section 363 of the U.S. Bankruptcy Code in the hope of a competitive auction within approximately 45 days to elicit higher value for the benefit of all stakeholders. ASI expects to enter into a stalking horse asset purchase agreement (the “APA”) with ASI Purchaser LLC under which, subject to Court approval, ASI Purchaser LLC will acquire substantially all of the Company’s assets and assume certain related liabilities.

Value City Furniture and American Signature Furniture stores and websites remain open at this time and will continue to fulfill customer orders and provide ongoing customer service to the best of its ability throughout the court-supervised process. Customers can benefit from discounts on a wide selection of home furnishings including living room, dining room, and bedroom collections in addition to decor, lighting, mattresses, and rugs for the holidays. Prior to the chapter 11 filing, certain Value City Furniture and American Signature Furniture stores commenced store closing sales and are offering deep discounts while merchandise lasts. A complete list of Value City Furniture and American Signature Furniture locations can be found at the Store Locator.

“For nearly 75 years, American Signature has served as a family-owned furniture destination that communities could rely on to provide style, quality, and value,” said Rudy Morando, Co-Chief Restructuring Officer for ASI. “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. 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.”

Additional Information about the Court-Supervised Process

ASI has secured approximately $50 million in debtor-in-possession (“DIP”) financing from Second Avenue Capital Partners LLC (“Second Avenue” or “SACP”). Subject to Court approval, this financing will support certain operations and the Company’s efforts to maximize value through the chapter 11 cases and sale process.

Additionally, ASI is filing a number of customary motions seeking, among other things, authorization to continue payment of employee wages and benefits, maintain certain customer programs, and satisfy post-petition obligations to vendors and partners. The Company expects to receive Court approval for these requests.

Additional information is available at https://www.veritaglobal.net/americansignature. Stakeholders with questions may call the Company’s claims agent, Verita, at (877) 726-6511 (U.S./Canada) or +1 (424) 236-7251 (International), or email at https://www.veritaglobal.net/americansignature/inquiry.

Advisors

Pachulski Stang Ziehl & Jones LLP is serving as legal counsel, BRG is serving as financial advisor, SSG Capital Advisors is serving as investment banker, SB360 Capital Partners has been retained to assist with inventory sales, and C Street Advisory Group is serving as strategic communications advisor for the Company. Reflect Advisors has been engaged as Independent Director with Goodwin Procter LLP acting as legal counsel to the Independent Director.

About American Signature, Inc.

Founded in 1948, American Signature, Inc. is a family-owned and operated furniture retailer based in Columbus, Ohio. It is the parent company of Value City Furniture and American Signature Furniture, with stores across the U.S. The business believes everyone has the right to a well-furnished life and is known for designer furniture at incredible prices. For more information, please visit www.americansignaturefurniture.com.

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Source: American Signature, Inc.