Loves files for bankruptcy
Stores in Boardman, Niles, Hermitage closing
WARREN — Loves Furniture, which in May acquired the former Levin Furniture stores in the Mahoning and Shenango valleys, has filed for Chapter 11 bankruptcy, and the three area stores are going out of business.
The stores in Niles, Boardman and Hermitage, Pa., are among 13 locations selling off their merchandise in a deal Loves struck with Connecticut-based Planned Furniture Promotions (PFP) in December.
Michigan-based Loves, owned by US Assets Inc. in Dallas, purchased 27 former Levin Furniture, Art Van Furniture and Wolf Furniture stores from Art Van Furniture LLC with plans to rebrand them Loves Furniture, but quickly ran into financial trouble.
The three local stores weren’t part of the deal, worth about $7 million, but later were acquired by Loves.
A document in the case filed in U.S. bankruptcy court in Detroit states warehousing and logistics related to Loves’ opening and expansion are responsible for much of the company’s financial problems.
A hearing in the case is set for Friday.
The company’s petition for Chapter 11 — a bankruptcy proceeding that allows companies to reorganize their debts and assets as opposed to fully liquidating — states Loves has 100 to 199 creditors, assets of $10 million to $50 million and liabilities of $10 million to $50 million.
Art Van Furniture, LLC bought Levin Furniture in 2017. The next year, Levin Furniture took over Goldsteins Furniture’s three local stores.