Art Van Furniture liquidates, Successor Company Loves's Declares Bankruptcy

**Lowell** · February-14-20, 05:35 PM

UPDDATE: Jan. 8, 2021:
Loves Furniture, Art Van Successor, Declares Bankruptcy

UPDATE: May 12, 2020:
17 Art Van stores to become Loves Furniture under new owners

UPDATE: Mar. 5, 2020:
Art Van Furniture to close all stores, liquidate

Didn't see this one coming. I thought they were pretty stable.

"Art Van Furniture's private-equity owner is exploring options that could include a sale and potential Chapter 11 bankruptcy for the retailer as it struggles with disruption in the furniture business, two people familiar with the negotiations told Crain's.

"Thomas H. Lee Partners LP, which acquired the Warren-based retailer in 2017 for an estimated $550 million, is working with advisers and creditors to find a buyer, which could include the family of its late founder, Art Van Elslander, one source close to the negotiations who requested anonymity told Crain's."

https://www.crainsdetroit.com/retail...e-negotiations

**Scottathew** · February-14-20, 07:03 PM

Art Van's marketing doesn't work on me anymore. Their furniture is of average quality. The "sale" doesn't matter, because everything is always on sale.

They have some antiquated technology and have missed dates to have the furniture available for me in the past.

I hope they survive, they employ a lot of people in our area.

**Danny** · February-14-20, 08:41 PM

Does that mean that Downtown Detroit will have not the America's Thanksgiving Day Parade this fall?

**Danny** · February-14-20, 08:42 PM

Blame Bob's Discount Furniture!!!

**Zacha341** · February-14-20, 09:10 PM

^^^ Or Wayfair!

**softailrider** · February-14-20, 09:25 PM

Mark up on furniture is something like 300%. Maybe too much expansion, their stores are all over the place.

**Zacha341** · February-15-20, 07:18 AM

^^^ Yep! Similar to mark ups like you find in jewelry retail. Many are tired of it and have found ways around it.

**Johnnny5** · February-15-20, 08:43 AM

There were some odd things going on with Art Van even before the Van Elslanders sold out. They had expanded into more states and even into places like rural Northern Michigan where they bought out the Brewbaker's Furniture in Onaway just to close it a couple years later. Then there were multiple CEO's hired and fired/quit in short order, so things have been going wrong behind the scenes for a while.

IMO with more shoppers going online, the old model of everything always being "On sale" is a simply a dying business model. More customers are now hyper aware of what items should cost, and many are now on the edge of being offended when they're presented with the fictional pre-sale prices that furniture stores once advertised. I hope Art Van can get things together, but if they can't it's not like there's a shortage of middle market furniture stores to choose from here in Metro Detroit. I do feel for some of their customers in more rural areas where their recent expansion had put smaller, family owned competitors out of business. If Art Van now pulls out of these markets, those areas are going to left without another local option.

**EGrant** · February-15-20, 09:04 AM

Obviously not specific to Art Van, but buying furniture and beds is one of the most annoying shopping experiences around. Other than actually sitting on the items, I have all the information, pricing, size, colors, etc. that I need on my phone. I don't need a pushy salesperson telling me about zero down financing until 2067. Going into those giant furniture warehouses feels like such a dated experience, and I suspect they've lost a ton of market share to the online retailers.

**Maof** · February-15-20, 09:07 AM

I recently purchased a small sectional from ArtVan. Went to three different locations and was quoted three different prices. The store that I purchased it from offered free delivery whereas the other two did not. My husband and I also noticed that every single sales person had the same line..."I just purchased this sectional with these tables,...." I felt they were pushing a set that they had too much inventory on. They overtook the furniture business and put many independent furniture stores out of business. I only know of two independent stores in my general area. I sure hope that shopping for a sofa, armchair or tables from an online retailer is not the new normal. I need to sit on that furniture to make sure it's comfortable and that the fabric is of good quality.

**401don** · February-15-20, 09:17 AM

Originally Posted by Zacha341

^^^ Or Mayfair!

I assume you mean Wayfair. They're doing lots of business and taking it away from bricks & mortar stores but still losing money:

https://www.cnbc.com/2020/02/13/onli...-9percent.html

Retail margins are so thin and have big overhead so it just takes online competition to suck away 10-20% of their business and they're screwed.

**Pat001** · February-15-20, 10:12 AM

The nature of the furniture business is they have to constantly advertise and constantly promote. If you miss one sale, don't worry there will be another next weekend. Kind of like Sears house paint. When was it NOT on sale?

**Jimaz** · February-15-20, 01:04 PM

Originally Posted by AmberM

Isn't this the parasitic private equity / vulture capital m.o.?....

You beat me to it. I was going to ask the same question.

**Dumpling** · February-15-20, 02:44 PM

Costco furniture might be the new normal.

I don't talk to her much but my niece was a salesperson at Art
Van last I heard. The salespeople at Art Van were a concerned
a couple of years back about the lack of online presence. Will
continue to not poke my nose in her affairs, she has numerous
interests and friends that are doing quite well for themselves,
but if there's anything I'm given to understand about what will
happen to Art Van I will put it in this thread. To be sure in
many such cases the employees are the last to know.

**JBMcB** · February-15-20, 03:08 PM

My sister in law bought a TV credenza from Art Van a year ago. After a two month delay for delivery, it took another six months to get the front door fixed. They had repair guys out at least a half a dozen times. They replaced the door with another broken door, then one with the wrong finish, then broke the next door while installing it. It was like a bad sitcom.

A few years ago we went to the Art Van on Woodward looking for a couch. The sales guys were less than helpful. Kept looking at the floor brochures to tell us about the couches. Great. On a lark we went down to the Scott Shuptrine on the first floor, and the lady who helped us basically designed a couch for us based on our room. We ended up buying a couch off of the floor from her.

I don't understand how two *connected* businesses can be run so differently.

**softailrider** · February-15-20, 09:04 PM

I bought two rooms of furniture from Gardella, on Gratiot around Chene Street. They are happy to order whatever you want, their prices and service are very good. I have no complaints at all about that place and would buy stuff there again in the future.

As far as buying furniture on line, who services it when / if something goes wrong? It’s all crap from China now, I’m not sure if there’s any Domestic furniture manufacturers left.

**Johnnny5** · February-15-20, 09:42 PM

Originally Posted by softailrider

As far as buying furniture on line, who services it when / if something goes wrong? It’s all crap from China now, I’m not sure if there’s any Domestic furniture manufacturers left.

There are still some domestic furniture makers including Monroe's own Lazyboy. They no longer made their chairs here in Michigan, but they do have multiple factories across the South.

**JBMcB** · February-15-20, 09:45 PM

Originally Posted by softailrider

It’s all crap from China now, I’m not sure if there’s any Domestic furniture manufacturers left.

There are quite a few domestic manufacturers, but they tend to be expensive. Stickley and Herman Miller come to mind. Gardner White carries [[or used to carry) furniture made from reclaimed lumber built in Detroit.

**wazootyman** · February-16-20, 06:44 AM

Originally Posted by softailrider

It’s all crap from China now, I’m not sure if there’s any Domestic furniture manufacturers left.

Too true. It's really sad, in my opinion. When we bought furniture for our first kid, I had one request: that it be made in the US. I don't trust the quality or safety of the materials and finishes coming out of China.

At the time, there was really only one option, Young America, made in North Carolina. We bought it from a family-owned retailer in Livonia [[whose mark-ups were far more reasonable than the competition).

We went to order some additional parts years later, only to find out that in 2014, their US factory would be closing. They're gone now [[at least their US presence is).

https://www.furnituretoday.com/high-...ung-america-2/

**ASilvaman** · February-16-20, 09:32 AM

Originally Posted by Zacha341

^^^ Or Wayfair!

Just went to check out Art Vans website and was greeted with a huge Wayfair ad on their front page.

**Hermod** · February-16-20, 09:56 AM

One furniture retail model was the "going out of business sale". Schmidlap's Furniture would have a going out of business sale. After the sale, the same store would be called Modern Furniture with the same manager and salespeople. Some time later, they would have a going out of business sale and would re-open as Designer Furniture. Rinse, repeat!

**313WX** · February-16-20, 10:19 AM

Originally Posted by Hermod

One furniture retail model was the "going out of business sale". Schmidlap's Furniture would have a going out of business sale. After the sale, the same store would be called Modern Furniture with the same manager and salespeople. Some time later, they would have a going out of business sale and would re-open as Designer Furniture. Rinse, repeat!

Not too long ago, I saw an video on YouTube of an ad from 1977 about Gardner-White having a "smoke sale" at their location that was on Fort Street and Junction. The location along with the nearby warehouse did actually close soon after [[it might have been their last store in Detroit proper).

They really have no shame.

**gnome** · February-16-20, 06:35 PM

The demise of local retailers is nothing to cheer about. Highland, Fretter, Federals, Cunningham’s, Adray, Crowley, Himmelhoch, Grinnels, Gantos, Winkelman’s, Manufactures Bank, Detroit Bank and Trust, Michigan National, American Natural Resources.

Frye and Sherman shoes . Anton’s Menswear.

You can hate Art Van all you want, you can hate on all those forgotten businesses listed above but when everything is gone where are you going to go then?

**313WX** · February-16-20, 06:37 PM

Originally Posted by gnome

The demise of local retailers is nothing to cheer about. Highland, Fretter, Federals, Cunningham’s, Adray, Crowley, Himmelhoch, Grinnels, Gantos, Winkelman’s, Manufactures Bank, Detroit Bank and Trust, Michigan National, American Natural Resources.

Frye and Sherman shoes . Anton’s Menswear.

You can hate Art Van all you want, you can hate on all those forgotten businesses listed above but when everything is gone where are you going to go then?

Amazon.

**Hermod** · February-16-20, 07:02 PM

Originally Posted by gnome

The demise of local retailers is nothing to cheer about. Highland, Fretter, Federals, Cunningham’s, Adray, Crowley, Himmelhoch, Grinnels, Gantos, Winkelman’s, Manufactures Bank, Detroit Bank and Trust, Michigan National, American Natural Resources.

Frye and Sherman shoes . Anton’s Menswear.

You can hate Art Van all you want, you can hate on all those forgotten businesses listed above but when everything is gone where are you going to go then?

And the supermarkets: Wrigley, Big Bear, Packer's, Farmer Jack...…..