American Signature Furniture Shuts Nashville Stores Amid Economic Strain

Economic pressures have led to significant changes in the furniture retail landscape, with the iconic chain, American Signature Furniture, announcing the closure of all four of its stores in the Nashville area. This decision is part of a broader realignment strategy aimed at enhancing operations in its most successful markets.

The closures, which include locations in Clarksville, Franklin, Madison, and Murfreesboro, were confirmed in a statement by the company’s Chief Operating Officer, Pat Sanderson, on October 16. While the exact dates for the stores’ final days of operation have not been disclosed, liquidation sales are already underway, offering discounts of 20% to 40% on various home furnishings.

Several factors are contributing to the turmoil within the furniture sector. A combination of rising labor costs, increased product prices due to inflation, and the lingering effects of the Covid-19 pandemic have placed many retailers under severe financial pressure. For instance, companies like Outten Brothers Home Furnishings in Salisbury, Maryland, and New Deal Furniture in El Paso, Texas, have also shut their doors in response to these economic challenges.

According to a report from SmithLeonard Accountants & Consultants, new orders in the furniture industry saw a decline of 9% in June 2025 compared to May, followed by a modest recovery with a 6% increase in July. Nonetheless, year-to-date figures show that new orders are down by 1% through July 2025 compared to the same period in 2024. Similarly, furniture shipments decreased by 2% in July compared to June but rose by 3% when compared to July 2024.

The report also highlighted a decrease in employment levels within the furniture industry, indicating that many companies are not replacing workers who leave. This trend suggests a cautious approach to labor costs as businesses navigate ongoing financial uncertainty.

American Signature Furniture, established in 1948, operates 122 stores across 17 states, including Florida, Georgia, Illinois, and Virginia. The chain employs over 3,200 workers nationwide, but details regarding layoffs in Tennessee remain unclear. The company has not filed a Worker Adjustment and Retraining Notification Act notice, which would typically inform employees of significant layoffs.

Pat Sanderson expressed appreciation for the Nashville customer base, stating, “While we’re sad to say goodbye to Nashville, we’re incredibly grateful to our customers here who’ve welcomed us into their homes over the years.” The current liquidation sales provide an opportunity for customers to purchase quality furniture at reduced prices before the stores close permanently.

The furniture retail sector continues to face volatility, with ongoing economic challenges prompting more companies to reevaluate their operations. As American Signature Furniture exits the Tennessee market, the future of other retailers remains uncertain as they adapt to shifting consumer habits and economic realities.