The operator of Art Van Furniture, PureSleep and a few other furniture and mattress store brands has filed for bankruptcy to close most of its locations, WSJ Pro Bankruptcy reported. The Michigan-based company said yesterday that it planned to complete going-out-of-business sales at most of its 169 retail stores within the next six to eight weeks after filing for chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Del. Retail stores operating under Art Van’s Levin Furniture, Levin Mattress and Wolf Furniture brands will be spared under the company’s plans, however. Robert Levin, the former owner of Levin Furniture, has agreed to purchase out of bankruptcy 44 retail stores operating under the banners and two related distribution centers, according to court papers. The proposed sale of the Levin Furniture and Wolf Furniture stores must be approved by a bankruptcy judge. The transaction would save about 1,000 jobs, Art Van Chief Finance Officer David Ladd said in a declaration filed in bankruptcy court. Art Van said it has worked out a budget with its senior lenders to fund its operations while completing the proposed sale and closure of the remaining business. The wind down Art Van has proposed will maximize value and recoveries for creditors, Ladd said.
