It's been three years since a private equity firm bought the legendary Art Van furiture company. Now all is not well.
Dustin Walsh of Crain's Detroit Business reports.
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. Art Van confirmed it is in negotiations with creditors about its future.
"We are actively exploring a variety of options with our creditors, investors and landlords to ensure Art Van can continue serving our guests and our communities," Diane Charles, vice president of communications for Art Van, said in a statement to Crain's. "It is premature at this time to comment further as no final decisions have been made. In the meantime, our stores are open and it's as business usual."