Louisville, Kentucky, November 27, 2025
Value City Furniture, part of American Signature Inc., will close two locations in Louisville due to significant financial struggles. The closures are part of a strategic shift as the company files for Chapter 11 bankruptcy protection. Increasing operational costs and a downturn in the housing market have led to a drastic decline in sales and an overall projection of reduced revenue. The community is encouraged to support local businesses as the retail sector adapts to these changes.
Value City Furniture Faces Closures Amid Bankruptcy
Two Louisville Locations to Shut Down as Parent Company Adjusts Strategy
Louisville, Kentucky – In a significant development for the local retail landscape, American Signature Inc., parent company of Value City Furniture, has announced that two stores in Louisville will close due to financial struggles, including a drastic decline in sales and increasing operational expenses. The store located at 3426 Preston Highway has long been a staple in the community and will be part of the company’s strategic shift as it files for Chapter 11 bankruptcy protection.
American Signature Inc., which manages over 120 retail locations under the Value City Furniture and American Signature Furniture brands across 17 states, has faced mounting challenges. A downturn in the housing market, alongside rising costs attributed to inflation and tariffs, has led to a sharp decrease in revenue—falling from $1.1 billion in 2023 to $803 million projected for 2025. In light of these financial difficulties, the company reported losses totaling $70 million over the past year, necessitating the decision to reduce its store footprint.
Impacts on Local Retail Community
The impending closures in Louisville are symptomatic of broader issues impacting the home furnishings industry at large. As consumers prioritize expenditures, many retailers are re-evaluating their operational strategies to adapt. This trend calls for innovation within the retail sector, giving rise to potential opportunities for small businesses and entrepreneurs eager to fill market gaps left by larger chains.
Liquidation Sales and Customer Information
Although specific closure dates have yet to be disclosed, liquidation sales are expected to commence shortly. Customers are encouraged to verify local store details and current inventory levels before making purchases. As part of its bankruptcy strategy, American Signature Inc. has secured a $50 million loan to fund operations during this transition, planning to maintain store operations temporarily while offering significant discounts on unsold merchandise. Notably, the company will stop accepting customer returns after December 7.
Future of Value City Furniture
The decision to close these stores illustrates the necessity of adaptability in today’s economic climate. With private investment and entrepreneurial initiatives showing promise in Kentucky, the local business community remains resilient. Many small businesses can leverage this period of adjustment to offer unique products and services, potentially revitalizing the local retail scene.
A Call for Community Support
As these changes unfold, community members are encouraged to support local businesses actively. The strength of Kentucky’s economy lies within its small businesses and entrepreneurs, who continuously innovate and adapt to the ever-changing marketplace. Engaging with local shops, whether by shopping for holiday needs or beefing up economic participation, can further fortify the community during this transition.
Conclusion
The closure of two Value City Furniture locations in Louisville signifies an important moment for the local economy. As American Signature Inc. navigates its Chapter 11 bankruptcy, the community’s resilience and support for local businesses will be crucial. By fostering a strong local retail community, Lexington and Louisville residents can help create an environment that encourages entrepreneurial innovation and economic growth for years to come.
FAQ
Which Value City Furniture stores in Louisville are closing?
The Value City Furniture store at 3426 Preston Highway in Louisville is set to close as part of the company’s bankruptcy proceedings.
When will the store closures take place?
The company has not specified the exact dates for these closures, but liquidation sales are expected to begin shortly.
What is the reason for the store closures?
American Signature Inc. filed for Chapter 11 bankruptcy protection, citing a significant downturn in the housing market and increased operational costs due to inflation and tariffs.
Will other Value City Furniture stores be affected?
The closures in Louisville are part of a broader strategy by American Signature Inc. to reduce its store footprint amid financial challenges. Specific details regarding other locations have not been provided.
How can customers obtain more information?
Customers are advised to check with their local stores for specific details regarding liquidation sales and return policies. For more information, they can visit the Value City Furniture website or contact their local store directly.
| Store Location | Address | Closure Status | Liquidation Sales |
|---|---|---|---|
| Value City Furniture – Preston Highway | 3426 Preston Highway, Louisville, KY 40213 | Closing as part of bankruptcy proceedings | Expected to begin shortly |
Now Happening on X
- @thestate (November 26, 2025): A manufacturing company is set to create nearly 200 jobs in Lexington, with details on when it will open. View on X
- @thestate (November 20, 2025): Lexington’s landscape in 2025 features eleven projects heralding major transformations in the city. View on X
- @thestate (November 22, 2025): Highlights eleven transformative projects shaping Lexington’s landscape in 2025. View on X
- @BozardCaleb (November 21, 2025): A proposal to increase the maximum land developers can clear cut at once is sparking tensions over growth in Lexington County. View on X
- @PCColumbia (November 20, 2025): Lexington County is considering allowing developers to clear up to 75 acres at a time, raising concerns about growth. View on X
- @bluegrassctc (November 24, 2025): Trade schools in Lexington are seeing renewed interest amid job market uncertainty for college graduates. View on X
- @FOX56News (November 20, 2025): With AI on the rise and major layoffs at companies like Amazon and Verizon, the job market for new college graduates is becoming unpredictable. View on X
Deeper Dive: News & Info About This Topic
HERE Resources
Mary E. Britton Middle School Opens in Fayette County
Author: STAFF HERE LEXINGTON KY STAFF
The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
