Howell Art Van Among Those To Reopen Under New Name
May 13, 2020
By Jon King / jking@whmi.com
A new name will soon adorn a local furniture outlet that was forced to close due to bankruptcy.
Crain’s Detroit Business reports that a Dallas-based equity firm acquired 27 former Art Van stores, including one in Livingston County, out of bankruptcy with plans to reopen as Loves Furniture. The newly formed company, US Realty Acquisitions LLC, will be headquartered in Royal Oak. The $6.9 million deal, which was finalized Tuesday in U.S. Bankruptcy Court in Delaware, has the company acquiring the assets and leases of the Art Van stores in Michigan along with Art Van and Art Van-owned Levin Furniture and Wolf Furniture locations in Pennsylvania, Illinois and one each in Ohio, Virginia and Maryland. In addition to the Genoa Township location at Latson and Grand River, the other Southeast Michigan stores include Art Van locations in Warren, Royal Oak, Livonia, Waterford, Ann Arbor, Westland, Shelby Township and Taylor.
Crain’s reports that Loves Furniture is expected to hire more than 1,000 employees, including the rehiring of former Art Van employees. It also plans a "soft launch" in the coming weeks as it prepares for a grand opening event once the coronavirus restrictions are lifted.
Art Van filed for Chapter 11 bankruptcy on March 9th, three years after its late founder, Art Van Elslander, sold the company to a Boston-based private equity firm, Thomas H. Lee Partners for an estimated $550 million. However, efforts to sell off remaining furniture were derailed by the COVID-19 outbreak forcing the company to seek Chapter 7 liquidation instead.