Home furnishings retailer American Signature has filed for Chapter 11 bankruptcy protection as it pursues a sale process of its business.

The company, which owns Value City Furniture and American Signature Furniture, is seeking a “competitive auction” and expects to enter into a stalking horse asset purchase agreement with ASI Purchaser.

Under the agreement, which remains subject to court approval, ASI will acquire substantially all of the company’s assets and assume related liabilities.

The company already closed some of its stores prior to the filing. The remaining locations and websites of the two furniture chains remain open and operate as normal. 

“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,” said Rudy Morando, co-chief restructuring officer at American Signature.

“Through that review, we determined that entering a court-supervised process will provide the best opportunity to maximize value,” Morando added.

Founded in 1948 and headquartered in Columbus, Ohio, American Signature operates approximately 120 stores across 18 states, as well as four distribution centers and three manufacturing facilities.

Earlier this month, Lugano Diamonds & Jewelry voluntarily filed for Chapter 11 relief to facilitate a sale of its business.