Particle.news
Download on the App Store

Value City Furniture Parent Files Chapter 11, Will Close 33 Stores as Auction Nears

The retailer is preparing a court-run auction supported by $50 million in new financing.

Overview

  • Closeout sales are underway at designated locations, including seven Michigan stores and the Gurnee Mills site in Illinois.
  • Remaining stores continue operating during the case, and a WARN notice signals 326 corporate layoffs beginning in January 2026.
  • Customer policies have shifted: returns are accepted through Dec. 7, gift cards are honored at continuing stores through Dec. 22, and closing locations are not taking gift cards.
  • The company says an auction to seek a buyer is expected to begin within about 45 days under court supervision.
  • Company disclosures cite weaker demand and widening losses, with 2025 sales down about $150 million year over year and operating losses up $52 million across a chain of roughly 120 stores employing about 3,000 people.