American Signature has launched an auction for nearly two dozen leases on its namesake and Value City furniture stores as part of its bankruptcy case, at a time when available retail space is scarce nationwide.
The leases are for 23 stores in 12 states and represent both suburban and urban markets, including Chicago, Miami and Washington, D.C. The Atlanta area has the most stores with leases in the auction, with seven locations. Bids must be filed by Dec. 19 with the U.S. Bankruptcy Court for the District of Delaware. The auction is scheduled for Jan. 5, pending court approval.
The stores with leases in the auction average about 50,000 square feet and "are available for immediate turnkey occupancy," according to A&G Real Estate Partners, the brokerage running the auction.
"These spaces are an excellent fit for furniture operators, off-price retailers, discount department stores, specialty grocers, sporting goods brands and entertainment tenants," Mike Matlat, senior managing director at A&G, said in a news release.
"In addition, we anticipate interest from landlords who want to subdivide and creatively reinvent larger boxes as part of shopping center redevelopments," Matlat said.
The vacancy rate for all types of retail space in the U.S. was 4.3% in the third quarter, a slight increase from 4% in the same period in 2024 but still below the 10-year average rate of 4.43%, according to CoStar's latest national retail report. Vacancy rates are likely to remain low due to a lack of available space, steady demand from an array of sectors and minimal new construction, the report said.
American Signature, based in Columbus, Ohio, filed for Chapter 11 bankruptcy last month, citing tariffs, rising inflation and the nationwide decline in the housing market. At the time the company filed for bankruptcy, the retailer operated about 120 stores in 17 states.
The largest stores with leases up for grabs are a 78,630-square-foot location in the Chicago suburb of Gurnee, Illinois; a 69,731-square-foot location in Ann Arbor, Michigan; and a 61,970-square-foot store in Richmond, Virginia.
Other store locations where leases are up for bid include Buffalo, New York; Louisville, Kentucky; St. Louis, Missouri; and Cincinnati, Ohio.
For the record
Matlat, along with Emilio Amendola and Erik Potocek at A&G Real Estate, is representing American Signature on the listings. Pachulski Stang Ziehl & Jones is American Signature's legal counsel in the bankruptcy case, Berkeley Research Group serves as the restructuring adviser, and SSG Capital Advisors acts as the investment banker.