Saks Global and Value City Furniture: Two Bankruptcies, Two Unique Paths

The retail landscape of 2025 was largely defined by closures, and so far, 2026 has had its fair share of closures as well. Recently, two household names have made headlines after filing for Chapter 11 bankruptcy — but for very different reasons. American Signature Inc., the parent company of Value City Furniture and American Signature Furniture, is moving toward liquidation and the closure of its remaining stores. Meanwhile, Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has also filed for Chapter 11; unlike American Signature, Saks Global has indicated that its stores will continue operating as part of a broader restructuring effort.

To the average reader, the word “bankruptcy” often signals the same outcome: stores shutting down and brands disappearing. In reality, that’s not always the case. In this article, we’ll break down what’s actually happening with each company, why their differences matter, and what this all means for the 2026 retail landscape.

American Signature Inc. Faces Store Closures and Liquidation

American Signature Inc. is a home furniture retailer based in Ohio that operates stores under the Value City Furniture and American Signature Furniture brands across multiple states. The company filed for Chapter 11 bankruptcy in late November 2025, citing declining sales and increased costs due to inflation and tariffs, according to Reuters. Then, in early January 2026, coverage from Retail Dive confirmed that the company’s remaining 89 stores are expected to close permanently, with going-out-of-business sales underway across both brands, marking the final phase of the company’s wind-down. While American Signature initially continued operations following its filing, the trajectory has now clearly shifted toward full liquidation rather than recovery.

For many consumers, this is what they picture when they hear the word “bankruptcy.” A company files for Chapter 11, begins liquidation sales, and ultimately exits the market entirely. This is the version of bankruptcy most people are familiar with, which is why the term often carries such a strong negative connotation. However, as we’ll see with Saks Global, this is not always how Chapter 11 plays out.

Saks Global Files for Chapter 11 as Part of Restructuring Plan

Saks Global is a luxury retail parent company that oversees several well-known brands, including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks OFF 5TH. In mid-January 2026, the company announced that it had filed for Chapter 11 as part of a broader restructuring process, while also securing $1.75 billion in committed financing to support its operations. According to the company’s official press release, stores and e-commerce platforms across its portfolio remain open and fully operational, with no mass closures announced at the time of filing. The company positioned the move as a strategic step rather than a retreat, with CEO Geoffroy van Raemdonck stating, “This is a defining moment for Saks Global, and the path ahead presents a meaningful opportunity to strengthen the foundation of our business and position it for the future.” Leadership changes were also announced as part of this process, signaling a broader effort to reposition the business rather than wind it down.

This is the type of bankruptcy people are generally less familiar with. For many consumers, it may be surprising to see a company file for Chapter 11 and continue operating as usual. In some cases, bankruptcy is not a signal that a brand is disappearing, but rather a mechanism companies use to reorganize, address financial challenges, and position themselves for long-term stability. That is the situation with Saks Global, whose filing reflects an effort to strengthen operations and plan for the future, rather than begin the process of liquidation.

Why the Difference Matters: Looking Beyond the Headline

At a glance, the situations surrounding American Signature Inc. and Saks Global appear nearly identical. Both companies made headlines for filing for Chapter 11 within a relatively short timeframe, which can make it easy to assume the stories are the same. They are not. A closer look reveals two very different realities: one company moving toward liquidation and store closures, and another using bankruptcy as part of a restructuring strategy. While the headlines may use the same words, the future outlook could not be more different.

So why does this matter? Staying informed today requires more than reacting to headlines, and these two situations offer a clear example of why. Chapter 11 is not a single outcome, but a process that can lead to different paths. In a rapidly changing retail environment, treating every bankruptcy as the same can lead to misunderstandings and poor business assumptions. Those who take the time to look beyond the headlines and understand the details are better positioned to follow where the retail landscape is truly headed and make more informed decisions as a result.

What This Means for Retail in 2026

With notable bankruptcy headlines emerging early in 2026, it’s understandable that some may view the current retail outlook as discouraging. However, as we discussed in a previous post about similar bankruptcies last year, retail is not disappearing—it’s evolving. American Signature Inc. and Saks Global illustrate that shift clearly, with some brands exiting the market while others work to reposition for long-term stability. The retail landscape continues to change in response to consumer behavior, cost pressures, and competition, but no matter what changes it goes through in 2026, the landscape will continue to adapt to the challenge.

For retailers navigating uncertainty, MASF can help support smarter planning and more strategic decision-making.