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

**jcole** · March-06-20, 10:51 AM

Yes; Art Van sold the chain to a private equity company in 2017 and this is what happens when that is done. They milk the company for what they can get and then liquidate. Fuck the employees and anyone with a warranty. Equity firms are in it for the cash. All hail Capitalism.

Originally Posted by Jimaz

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

**Richard** · March-06-20, 12:56 PM

Originally Posted by jcole

Yes; Art Van sold the chain to a private equity company in 2017 and this is what happens when that is done. They milk the company for what they can get and then liquidate. Fuck the employees and anyone with a warranty. Equity firms are in it for the cash. All hail Capitalism.

Thats why I do not think we are getting a clear picture of the impact of internet sales verses brick and mortar.

Most of the large closures have been the purchase,rape n dump,it reminds me of the whole GM thing,buy up the street car lines and shut them down.

After the locusts are done they will be investing that cash into internet store fronts.

**313WX** · March-06-20, 12:59 PM

To play devil's advocate, many will argue it was the Van Elslander's family decision to expand so briskly [[in an environment where brick & mortar retail is struggling in general) that set the company up for failure.

They likely realized this was coming once it was too late and wanted to get rid of this ticking time bomb ASAP before all of their fortunes were lost.

When a company reaches the point that it gets acquired by a PE firm, it's already FUBAR.

**bust** · March-06-20, 01:10 PM

Private equity == grim reaper.
Those who don't know are the ones they profit from.
Sad, and true.

The Van Elslanders don't have a worry in the world.
No need to worry about innovation, they'll spend their fortunes outfitting their yachts and restocking their private caribbean beaches with sand.

**Richard** · March-06-20, 01:16 PM

Originally Posted by 313WX

To play devil's advocate, many will argue it was the Van Elslander's family decision to expand so briskly [[in an environment where brick & mortar retail is struggling in general) that set the company up for failure.

They likely realized this was coming once it was too late and wanted to get rid of this ticking time bomb ASAP before all of their fortunes were lost.

When a company reaches the point that it gets acquired by a PE firm, it's already FUBAR.

Or they set the company expansion up to attract a buyer.

People dealing in billions do not make money investing in millions or the corner store.

They made it look desirable to the big fish,maximizing on the sale and went to the beach.

A majority of the large retail chains expanded nationally big time before the crash,but they sold out before it happened and banked the profits.

It is like if one of us bought a 900 sqft house,added another 500 sqft and sold it for triple the purchase price,sometimes bigger is better.

**Hypestyles** · March-06-20, 10:11 PM

oh well. best of luck for the employees in finding new jobs or starting some kind of small business for themselves.

**Richard** · March-06-20, 11:13 PM

Originally Posted by Hypestyles

oh well. best of luck for the employees in finding new jobs or starting some kind of small business for themselves.

Sometimes when one door closes another opens.

I was a builder when the market crashed,things came to a halt so I started to build food trucks,people that were laid off from companies cashed in thier 401k and opened food trucks because at that time you needed that 50k cash to get into them.

Some will move on to self employment and employ others in the process.

Sometimes it is good because it kinda forces people to become creative and believe in themself more then when they were in a everyday is the same situation.

**JBMcB** · March-07-20, 01:20 AM

Originally Posted by jcole

Yes; Art Van sold the chain to a private equity company in 2017 and this is what happens when that is done. They milk the company for what they can get and then liquidate.

How exactly do you do this with a retail chain? You think they paid less than the assets were worth? Usually valuation is total assets + a couple years of profit. Back in the real corporate raider days they could dig into pension funds, but those are long gone. Art Van doesn't even own a lot of property that they can liquidate - mainly a big warehouse in Warren and a few corporate-owned standalone stores here and there.

I think Lee Partners will be lucky to get their money back. I don't think they've done many retail aquistions, they seem to be focused on services and food [[Equifax, Dunkin, Snapple, etc...) I'm guessing this will be their last retail venture.

Contrary to popular belief, most private equity companies make money by buying a failing business, turning them around, and taking them public again. Sure they can make some money by tearing a company apart, but they make a LOT more off of a public offering.

**Maof** · March-07-20, 05:03 PM

I'm hearing there was violence at the Warren store today and police were called. Many buyers who have put money down on purchases they may never see and/or refunds. Really an awful situation.

**Maof** · March-07-20, 05:12 PM

Just found this article. Looks like employees aren't showing up either..https://www.freep.com/story/money/bu...ts/4987324002/

**313WX** · March-07-20, 05:53 PM

What's interesting about what's happening with Art Van is that just a few years ago, there was serious talk about them opening a store downtown.

Now they won't have any stores anywhere.

**Hypestyles** · March-07-20, 07:20 PM

Originally Posted by 313WX

What's interesting about what's happening with Art Van is that just a few years ago, there was serious talk about them opening a store downtown.

Now they won't have any stores anywhere.

who are the options now, who could have a furniture store downtown.

**Zacha341** · March-07-20, 07:25 PM

Romeo and Juliet Furniture? ....

... they have an eight mile location!

**JBMcB** · March-07-20, 10:39 PM

Originally Posted by Hypestyles

who are the options now, who could have a furniture store downtown.

Gorman's. Gardner White. Or a big national chain like Pottery Barn, Crate & Barrel, Restoration Hardware, Design Within Reach, etc...

**313WX** · March-08-20, 02:08 AM

Originally Posted by JBMcB

Gorman's. Gardner White. Or a big national chain like Pottery Barn, Crate & Barrel, Restoration Hardware, Design Within Reach, etc...

Crate & Barrel is having their own financial problems, while Restoration Hardware had signed a lease for a location downtown then backed out.

**Danny** · March-08-20, 08:28 AM

This is fishy! How come a popular furniture store in Michigan suddenly went out of business all the sudden?

**jcole** · March-08-20, 08:51 AM

Originally Posted by Danny

This is fishy! How come a popular furniture store in Michigan suddenly went out of business all the sudden?

Because the Van Eslanders sold it 3 yrs ago to a private equity firm.

**Warrenite84** · March-08-20, 02:45 PM

I spoke with one of the salespeople on 3/6. They said the Elslander brothers were wanting to invest back into the company if they were given control over the operations. They were turned down and now the company is gone. Their warehouse facilities on 14 Mile is huge. I hope they are interested in reconstituting the business by perhaps buying the facilities from creditors and starting anew. This area would be severely hampered IMHO if they don't. Bricks and mortar stores are not passe but need to evolve. I and many others don't buy furniture online because looks, space, tactile quality of finishes, and comfort must be seen in person on some things before you buy. Customer service to steer you to the right products is also essential when you don't know what you want.

I've not seen the news reports but had heard the Mayor of Warren is hopping mad that the vampire capitalists sunk a perfectly viable company. It was their mismanagement that sunk the company, not the family who once owned it. Certainly a cautionary tale for company owners who want to retire and see the company they birthed and nurtured to carry on the legacy.

**Johnnny5** · March-09-20, 08:49 AM

Looks like the bankruptcy filing is offical, and might have a outsized impact on other local businesses. Two of the largest creditors mentioned are La Z Boy Furniture of Monroe and Sussman ad agency in Southfield. Both appear to be owed more than 5 million dollars each! I imagine there are a ton of smaller vendors that are owed a substantial amount as well, not to mention customers.

https://www.freep.com/story/money/business/2020/03/09/art-van-furniture-files-bankruptcy/4998785002/

**Lowell** · March-09-20, 10:21 AM

Heart breaking stories like this one are surfacing, along with near riots, police intervention, and crying cashiers. Sheesh.

Mike found out about the store's closing from social media and immediately called customer service. He said he was told his delivery was not coming, his order was no longer in stock and he could either pick out new pieces of furniture from what's available in the warehouse or lose $3,000.

After similarly being told his special order was no longer available, Clemons went to the Art Van in Taylor to select new pieces. There, he said, he saw a cashier crying behind the counter, customers breaking pieces of furniture and someone even walking out of the store with unpaid merchandise.
“Everyone's going nuts at the stores, it's been an absolute nightmare,” Clemons said. “It was almost reminiscent of a riot.”

https://freep-mi.newsmemory.com/?pub...a43fb0_1343599

**Wesley Mouch** · March-09-20, 10:59 AM

Originally Posted by 313WX

To play devil's advocate, many will argue it was the Van Elslander's family decision to expand so briskly...snip...
When a company reaches the point that it gets acquired by a PE firm, it's already FUBAR.

Same thought here. Vulture causes death.

There are vulture PE firms who eat carcasses [[and others who really do invest and restructure and save their victims). What's clear is that if Art Van was successful, the PE firms couldn't afford to buy their way in. They bought in because the investors [[or family) realized that the company wasn't working.

jcole, I agree. All Hail Capitalism. Clears out bad companies, making room for new. What do you suggest, jcole? A bail-out for Art Van?

**Danny** · March-09-20, 11:06 AM

Originally Posted by jcole

Because the Van Eslanders sold it 3 yrs ago to a private equity firm.

Van Eslander family should keep the business going. But NOOOO!!!! They want to sell it some outsider and run it to the ground.

It's like the scene in the film Wall Street in a scene where Gorden Gekko brought Blue Star Airlines and plans to run it to the ground.