BECOME AN AFFILIATE OF T-SHIRT HELL AND MAKE SOME MONEY!
Name: Thomas H. Lee Partners
Age: 46
Occupation: buyout firm
Last Seen: Boston
Bee-otched For: taking a 2X4 to Art Van
Age: 46
Occupation: buyout firm
Last Seen: Boston
Bee-otched For: taking a 2X4 to Art Van
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When one thinks of Michigan, they think of cars, peninsulas, cherries and Art Van Furniture.
For 61 years, the iconic furniture store had been furnishing generations of Michigan homes. My parents bought from Art Van when I was a kid. I still have old furniture that was bought from there years ago.
Soon, Art Van will be no more.
Last week, they announced that all their company owned stores would be liquidated and closed as part of their Chapter 11 bankruptcy. Franchised locations would remain open, however. Even though they're known for their liberal amount of advertising (which includes a cringeworthy ripoff of "We're An American Band" with "brand" replacing "band"), it just hasn't been the same since the family that started it sold the business several years ago.
Art Van was started in 1959 by its namesake, Archie Van Elslander at the corner of Gratoit and 10 Mile near Detroit. In the 61 years since, Art Van grew to over 140 locations in six states. Sadly, Archie died at 87 in 2018. Shortly before his death, the Van Elslander family decided to sell their stores to Thomas H. Lee Partners, a private equity firm out of Boston.
What lead to Art Van's demise was all because of Lee's poor management of the company. They were constantly expanding while sales were being diminished thanks to competition and internet sales. It's also worth noting that the man who filed Art Van's bankruptcy also helped run Kmart and Sears, two companies also run into the ground because of them being leveraged.
Equity firms have a farmers' philosophy, and it's not to have all your eggs in one basket. If one business fails, it's not the end of the world. They'll have other companies that do OK. Lee's investments include Univision, Guaranteed Rate (the namesake of the Chicago White Sox' stadium) and a little company called iHeartMedia. As we all know, that company let go dozens of programmers and DJs from their stations not long ago while giving cancer-stricken Rush Limbaugh another massive contract.
Meanwhile, Art Van owes their suppliers some $20 million. Those companies include Serta, La-Z-Boy and the company that produces their commercials. The company even had to pay an $8 million tariff bill last year.
Because of Art Van's liquidation, customers are now being ripped-off since their warranties are null and void. Long lines are being formed in front of their soon-to-be shuttered stores and some customers are not happy since at some of their locations, their delivery drivers all quit.
Maybe - just maybe - this is why I never buy an extended warranty on anything. Hell, I remember buying stuff from Circuit City and them begging me to get a warranty like Mel Blanc impersonating the Lucky Strike Auctioneer. Gee, I wonder what happened to them?
Look, it sucks that Art Van will soon be a memory. Hell, they saved the Detroit Thanksgiving Day Parade when Hudson's was begat to Marshall Field's and then (ironically) Macy's. Honestly, I like that parade better since it's not loaded with tacky Broadway dorkiness. But, it's the way of the world, especially when one spends more than they earn. Plus the fact that I know people who bought furniture from Art Van and it broke some time later.
When Art Van goes, it won't be the end of the world. Hell, there's a furniture store on every block where I live. I remembered when Mattress Firm seemed to have a store on every street corner! They too, went bankrupt and scaled way back on their stores. Now, they only have one store close to here.
So Art Van, you'll be missed. Sorta.
Art Van was started in 1959 by its namesake, Archie Van Elslander at the corner of Gratoit and 10 Mile near Detroit. In the 61 years since, Art Van grew to over 140 locations in six states. Sadly, Archie died at 87 in 2018. Shortly before his death, the Van Elslander family decided to sell their stores to Thomas H. Lee Partners, a private equity firm out of Boston.
What lead to Art Van's demise was all because of Lee's poor management of the company. They were constantly expanding while sales were being diminished thanks to competition and internet sales. It's also worth noting that the man who filed Art Van's bankruptcy also helped run Kmart and Sears, two companies also run into the ground because of them being leveraged.
Equity firms have a farmers' philosophy, and it's not to have all your eggs in one basket. If one business fails, it's not the end of the world. They'll have other companies that do OK. Lee's investments include Univision, Guaranteed Rate (the namesake of the Chicago White Sox' stadium) and a little company called iHeartMedia. As we all know, that company let go dozens of programmers and DJs from their stations not long ago while giving cancer-stricken Rush Limbaugh another massive contract.
Meanwhile, Art Van owes their suppliers some $20 million. Those companies include Serta, La-Z-Boy and the company that produces their commercials. The company even had to pay an $8 million tariff bill last year.
Because of Art Van's liquidation, customers are now being ripped-off since their warranties are null and void. Long lines are being formed in front of their soon-to-be shuttered stores and some customers are not happy since at some of their locations, their delivery drivers all quit.
Maybe - just maybe - this is why I never buy an extended warranty on anything. Hell, I remember buying stuff from Circuit City and them begging me to get a warranty like Mel Blanc impersonating the Lucky Strike Auctioneer. Gee, I wonder what happened to them?
Look, it sucks that Art Van will soon be a memory. Hell, they saved the Detroit Thanksgiving Day Parade when Hudson's was begat to Marshall Field's and then (ironically) Macy's. Honestly, I like that parade better since it's not loaded with tacky Broadway dorkiness. But, it's the way of the world, especially when one spends more than they earn. Plus the fact that I know people who bought furniture from Art Van and it broke some time later.
When Art Van goes, it won't be the end of the world. Hell, there's a furniture store on every block where I live. I remembered when Mattress Firm seemed to have a store on every street corner! They too, went bankrupt and scaled way back on their stores. Now, they only have one store close to here.
So Art Van, you'll be missed. Sorta.
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Bee-otch of the Day Archives can be seen on http://beeotchoftheday.blogspot.com
Bee-otch of the Day is a production of Chuck69.com, Grand Rapids' site for Stern, politics and more!
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