American Signature Inc., a 77-year old furniture company, has filed for Chapter 11 bankruptcy protection , citing a sharp slump in furniture demand and rising operating costs.

The Columbus, Ohio-based company, which operates over 120 stores in 17 states under the American Signature Furniture and Value City Furniture brands, reported losses of about $70 million over the past year and entered the filing with only $2 million in cash, court filings show .

“In order to maximize value, the Company has commenced a sale process,” the company announced in a release .

“ASI expects to enter into a stalking horse asset purchase agreement,” the company announced, adding that subject to the courts approval, the purchasers will “acquire substantially all of the Company’s assets and assume certai

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