New MI Furniture Store Files for Bankruptcy Less Than a Year Later
Love's Furniture, the modern furniture store that took over after Art Van stores closed, is already filing for bankruptcy after less than a year in business.
The Detroit Free Press reports that the company filed Chapter 11 bankruptcy in Detroit this week. The company acquired Art Van in May 2020 and started opening stores across the state over the summer. In total they were operating 32 stores in three states and now will be keeping only 13 open total -- 12 in Michigan and one in Ohio.
Love's opened their Muskegon location just three months ago and it will be one of the ones to go. The Grand Rapids store on 28th St. will remain open. The only other West Michigan location is in Portage and that too will stick around. A liquidation company will take over the rest to conduct going-out-business sales. Ironically, some of those buildings still have "grand opening" signs.
The furniture company says the pandemic and lack of foot traffic negatively affected their business. Loves' CEO told the Free Press last month that they were having difficulty replenishing their inventory because of supply issues due to COVID-19. As a result, they were facing shipping delays which turned customers away.
Apparently, the company was losing money since opening up shop. Their bankruptcy filing shows they have $10 to $50 million in liabilities to upwards of 200 creditors.
The company also has a stack of unpaid vendor bills, including from Detroit-based Fairmont Sign Co. that says it is owed more than $750,000 and a Mississippi-based furniture supplier that recently sued Loves Furniture over $1.8 million in merchandise.