CLEVELAND, Ohio – American Signature Inc., the company behind Value City Furniture, will close its Columbus headquarters and lay off 326 employees as it struggles with mounting debt.

The company filed paperwork with the Ohio Department of Job and Family Services on Nov. 21, saying layoffs will begin Jan. 20. Of the employees losing their jobs, 256 live in Ohio.

In its notice, the company cited a “significant decline in sales (and) resulting liquidity challenges.”

A day later, American Signature filed for bankruptcy in U.S. District Court in Delaware, listing more than $500 million in debt. Records show that includes $14.5 million owed to a furniture company based in China.

American Signature said it tried to avoid layoffs by cutting costs and seeking new financing, but those efforts

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