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

**Maof** · March-09-20, 05:51 PM

Originally Posted by Lowell

Speaking of vulturing has anyone else seen the Gardner-White ads promising to match going-out-business prices without naming names?

Yessir. It's been non-stop with them the last few days.

**mtburb** · March-09-20, 06:13 PM

Originally Posted by Lowell

Speaking of vulturing has anyone else seen the Gardner-White ads promising to match going-out-business prices without naming names?

Yes I have.

**aj3647** · March-10-20, 04:41 PM

Trump's Trade War helped kill Art Van.

https://www.clickondetroit.com/news/...van-furniture/

He told the bankruptcy court extreme market conditions such as reduced foot traffic, internet shopping, an $8 million tariff bill last year and very tough competition led to negative year-to-year sales.

$8 million in tariffs that Art Van had to pay the government for importing furniture from China. Weird, because we were told over and over and over again by a certain Orange someone that "GYNA" paid the tariffs and not U.S. companies, so I guess someone must be lying here. I wonder who...

**Johnnny5** · March-11-20, 12:03 AM

Originally Posted by aj3647

Trump's Trade War helped kill Art Van.

https://www.clickondetroit.com/news/...van-furniture/

$8 million in tariffs that Art Van had to pay the government for importing furniture from China. Weird, because we were told over and over and over again by a certain Orange someone that "GYNA" paid the tariffs and not U.S. companies, so I guess someone must be lying here. I wonder who...

Yeah, Art Van imploding is President Trump's fault. I'm surprised it took a few pages before someone here played the "Trump" card. LOL...

**leapfrog** · March-11-20, 07:04 AM

Originally Posted by Johnnny5

Yeah, Art Van imploding is President Trump's fault. I'm surprised it took a few pages before someone here played the "Trump" card. LOL...

What "Trump card"?! Trump placed tariffs against Chinese imports, did he not?
The tariffs have been cited as one of the reasons for Art Van's demise, has it not?

It's not blaming Trump, it's assigning [[partial) responsibility where it belongs.

**aj3647** · March-11-20, 07:43 AM

Originally Posted by Johnnny5

Yeah, Art Van imploding is President Trump's fault. I'm surprised it took a few pages before someone here played the "Trump" card. LOL...

Read the article, Goober. The CFO himself cited the tariffs as one of the reasons they went bankrupt. Take it up with him.

**Johnnny5** · March-11-20, 08:14 AM

Originally Posted by aj3647

Read the article, Goober. The CFO himself cited the tariffs as one of the reasons they went bankrupt. Take it up with him.

I read the article, but you wrote the header of your post with emphasis on Trump. Do you really expect the CFO to walk into the bankruptcy court and say that his private equity bosses are just a bunch of dimwits that managed to turn a highly successful retailer into a bankrupt shell in under 3 years?

Honestly, I would expect the CFO to blame the tariffs on their failures, just as I expect to see President Trump mentioned in almost every single one of your posts here.

**Wheels** · March-11-20, 09:04 AM

Originally Posted by aj3647

Read the article, Goober. The CFO himself cited the tariffs as one of the reasons they went bankrupt. Take it up with him.

I believe all CEO’s of private equity firms!

**313WX** · March-11-20, 10:36 AM

If Art Van's foundation wasn't already rotting, it would have been able to withstand unforseen circumstances such as Trump's tariffs.

Gardner-White is still with us.

**gumby** · March-11-20, 01:05 PM

Originally Posted by 313WX

If Art Van's foundation wasn't already rotting, it would have been able to withstand unforseen circumstances such as Trump's tariffs.

Gardner-White is still with us.

Art Van was owned by a private equity firm who sold off all of the assets and saddled them with a ton of debt. This is what private equity firms do, they are a stain on our economy. This was inevitable the moment they were sold.

**Johnnny5** · March-11-20, 01:18 PM

Originally Posted by gumby

Art Van was owned by a private equity firm who sold off all of the assets and saddled them with a ton of debt. This is what private equity firms do, they are a stain on our economy. This was inevitable the moment they were sold.

We saw that happen with Sears and Eddie "The Leech" Lampert, but what assets did Art Van hold that were supposedly sold off? As far as I know they didn't have any valuable brands or real estate that will be protected from this bankruptcy. It appears that the equity firm just overpaid, and then did an incredibly bad job of running the business. As far as I can tell they will be losing 100% of their investment on this one.

**Dbest** · March-12-20, 11:36 AM

Originally Posted by aj3647

Trump's Trade War helped kill Art Van.

https://www.clickondetroit.com/news/...van-furniture/

$8 million in tariffs that Art Van had to pay the government for importing furniture from China. Weird, because we were told over and over and over again by a certain Orange someone that "GYNA" paid the tariffs and not U.S. companies, so I guess someone must be lying here. I wonder who...

Maybe the prudent thing to do would have been to cut back their dependence on the Chicoms? They had to know the balloon was going to burst sooner or later.

They should have followed suit with Ashley furniture and increased their production in America. But don't let me get in the way of you blaming a president who is trying to speed up the process. Orange man bad! Jobs for Chinese not for thee!

I hope youre not a climate change advocate because if so you need to educate yourself on the dangers to the environment from Chinese manufacturing... orange man bad tho!!!

**Cincinnati_Kid** · March-12-20, 04:46 PM

Originally Posted by 313WX

If Art Van's foundation wasn't already rotting, it would have been able to withstand unforseen circumstances such as Trump's tariffs.

Gardner-White is still with us.

Maybe Art Van seen the handwriting on the wall, and bailed. 191 stores across 5 states, is a lot of brick and mortar overhead to maintain. Either way, they aren't complaining they got paid.

**gumby** · March-13-20, 07:06 AM

Originally Posted by Johnnny5

what assets did Art Van hold that were supposedly sold off?

From what I have read Art Van owned the buildings they were located in and they were sold off and high lease agreements were signed.

**djtomt** · March-13-20, 07:43 AM

Originally Posted by gumby

From what I have read Art Van owned the buildings they were located in and they were sold off and high lease agreements were signed.

Exactly. Private equity's purpose is to return value to the shareholder, not to resuscitate companies. They saw an opportunity in the real estate and took it.

**Johnnny5** · March-13-20, 10:30 AM

Originally Posted by gumby

From what I have read Art Van owned the buildings they were located in and they were sold off and high lease agreements were signed.

Do you happen to have any links that document this information? I've searched online and can only find mention of a few recent sales of Art Van properties, but the were buildings leased to Art Van. As far as I can tell the REIT that owned them didn't appear to be associated with the private equity firm that purchased Art Van.

**Richard** · March-13-20, 12:50 PM

The Howell store is currently owned by Scottsdale, Arizona-based real estate investment trust Store Master Funding XII.
]Hain said the investment trust owns, and is selling, all five locations.

Charles said Warren-based Art Van Furniture rents its store locations.
The sale of the five stores will be structured as a master lease agreement, which means whoever buys them will be the landlord at all five.
]"Art Van Furniture will pay rent to the new owner," said Tim Hain, the director of B+E's Chicago office.

They will stay open," said Diane Charles, Vice President of Corporate Communications at Art Van Furniture. "There will be no effect on the operations of the properties. We will remain open and continue forward unchanged. It’s just an ownership change of the building, not the company."

https://www.livingstondaily.com/stor...on/2119647001/[/COLOR

https://www.storecapital.com/more-ab...g-solutions-2/

**Cincinnati_Kid** · March-21-20, 10:51 PM

Change of plans for Art Van. They hoped to stay open until May to liquidate, but they have effectively laid off all employees as of Friday. All stores are closed due to Coronavirus, and customers have until Sunday to pick up their furniture or other items. If they don't, they won't get them. Bad scene all the way around, especially for all those employees losing their jobs.

**Maof** · March-22-20, 07:40 AM

Originally Posted by Cincinnati_Kid

Change of plans for Art Van. They hoped to stay open until May to liquidate, but they have effectively laid off all employees as of Friday. All stores are closed due to Coronavirus, and customers have until Sunday to pick up their furniture or other items. If they don't, they won't get them. Bad scene all the way around, especially for all those employees losing their jobs.

They gave employees notice via email!

Those employees were counting on those last few paychecks and health coverage. All cut off as of Friday.

**Lowell** · May-12-20, 05:19 PM

Good news on the Art Van front...

17 Art Van stores to become Loves Furniture under new owners

Deal approved and finalized in bankruptcy court
New company to be headquartered in Royal Oak
Plans to reopen in coming weeks and hire 1,000

A Dallas-based equity firm acquired 27 former Art Van stores out of bankruptcy with plans to reopen as Loves Furniture.

The newly formed company, which will operate 17 locations in the state, will be headquartered Royal Oak, the company said in a press release.
https://www.crainsdetroit.com/retail...der-new-owners

**Honky Tonk** · May-12-20, 06:40 PM

Originally Posted by Lowell

Good news on the Art Van front...

17 Art Van stores to become Loves Furniture under new owners

Deal approved and finalized in bankruptcy court
New company to be headquartered in Royal Oak
Plans to reopen in coming weeks and hire 1,000

A Dallas-based equity firm acquired 27 former Art Van stores out of bankruptcy with plans to reopen as Loves Furniture.

The newly formed company, which will operate 17 locations in the state, will be headquartered Royal Oak, the company said in a press release.
https://www.crainsdetroit.com/retail...der-new-owners

"Love Furniture"... Hmmmm...

**Scottathew** · May-13-20, 08:51 AM

Unfortunately the new Rochester Hills store that just opened last year in May will not be one of them. It was a failed Super K-Mart for many years and now it's a failed Art Van.

**Bong-Man** · January-08-21, 10:26 AM

Loves Furniture files for bankruptcy [[detroitnews.com)

Well that didn't take very long.

**Wesley Mouch** · January-08-21, 01:05 PM

Not sure how this has to do with tariffs -- since the tariffs hit all furniture stores equally -- unless AV bought more Chinese than other chains. Maybe.

Bigger problem was likely Ikea, Wayfair, and coronavirus lockdowns hitting their customer base disproportionately vs. higher-end stores where the zoom workers and teachers can shop.