WARREN, Mich. - American furniture retail giant Art Van Furniture has gone bankrupt and is closing all store locations over the next 60 days.
Art Van is one of the biggest furniture retailers in the Midwest, operating 141 stores throughout Michigan, Ohio, Illinois, Indiana, Iowa, and Missouri, as well as a full service e-commerce website, with an additional 45 freestanding Art Van PureSleep bedding stores.
“Despite our best efforts to remain open, the company’s brands and operating performance have been hit hard by a challenging retail environment,” Art Van spokesperson Diane Charles said in a statement.
The closure was abrupt - the company announced that it would begin closing all stores immediately. It will begin an $150 million liquidation sale March 6.
Around 3,100 employees will be laid off.
Customers with ongoing warranties are out of luck, attorney Charlie Langton told FOX 2 Detroit. Customers with a balance on their store credit card must still pay the bill. Those payments will be redirected to a court or trustee.
Customers might never see furniture they have ordered. It seems the company cancelled all current orders.
Just last month, fellow furniture retailer Pier 1 Imports also filed for bankruptcy. The company said it would close 450 locations, including all stores in Canada and two distribution centers. Online retailer Wayfair has also suffered heavy losses as of late, reporting a near billion dollar loss for 2019.
Founded in Michigan in 1959, Art Van was family-owned until it was sold to a Boston-based investment firm in 2017. After founder Art Van Elslander died in 2018, rumors speculating bankruptcy began circulating.
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