CLEVELAND, Ohio – American Signature Inc., the company behind Value City Furniture, will close its Columbus headquarters and lay off 326 employees as it struggles with mounting debt.
The company filed paperwork with the Ohio Department of Job and Family Services on Nov. 21, saying layoffs will begin Jan. 20. Of the employees losing their jobs, 256 live in Ohio.
In its notice, the company cited a “significant decline in sales (and) resulting liquidity challenges.”
A day later, American Signature filed for bankruptcy in U.S. District Court in Delaware, listing more than $500 million in debt. Records show that includes $14.5 million owed to a furniture company based in China.
American Signature said it tried to avoid layoffs by cutting costs and seeking new financing, but those efforts were “ultimately insufficient.”
Value City Furniture has been a pillar of Columbus retail for decades, with locations across Ohio and the Midwest. It has more than 120 stores, according to published reports.
The company has begun to close some of its stores. It noted that “select stores and our website remain open at this time, and we hope to help you find the style, quality and value furniture you have come to love.”
The closing touches nearly every part of the company, affecting executives, accounting, customer service, IT, marketing and operations. Customer service will see the deepest cuts, with 50 positions being eliminated.
Eric Duerksen, the executive vice president of human resources, signed the notice and said affected workers have been told about unemployment benefits and dislocated worker assistance.
