Deal to save Levin's falls through; stores close, but owner hints at possible return

Two weeks after announcing a bid to buy back his family’s furniture company, Robert Levin on Friday announced the deal fell through.

Levin said he learned Thursday that Michigan-based Art Van Furniture LLC, which bought Levin Furniture in 2017, decided not to proceed with the terms of their agreement. Instead, Art Van closed all Levin stores immediately and terminated employees.

“Two weeks ago, I joyously announced that I had agreed to buy back Levin Furniture and the Pennsylvania Wolf stores out of bankruptcy,” Levin said in a statement. “Today, I have learned that the parent company of Levin’s and Wolf is unwilling to sell to me on the terms of our letter of intent. This is horrible.”

Levin said Art Van cited “vast reductions in business” as the reason for not following through on the agreement. Mandatory store closings caused by the covid-19 pandemic led to a dramatic loss in revenue and the inability to operate the business as a going concern.

“The coronavirus is causing unprecedented disruption and turmoil everywhere,” he said. “Rather than keep their commitments to the deal, Art Van and their lenders decided to walk.”

But that might not be the end of the story.

In an interview, Levin said he is not throwing in the towel and wants to do right by the employees.

“I’m not finished. I am committed to finding a way to save Levin’s. That was my goal in coming back, and that is still my goal,” he said, noting there is a 100th anniversary to celebrate later this year.

“I am working on a plan so that, soon, there will be something that we can celebrate together,” he said in the statement.

Levin, 63, reached an agreement March 4 to acquire the Pennsylvania and Ohio assets of Levin Furniture and Altoona-based Wolf Furniture through a court restructuring of Art Van.

The surprise, storybook move by Levin, beloved former owner of the company founded by his grandfather in 1920, had the potential to save 1,200 jobs at both Pennsylvania companies. Two weeks ago, he made a triumphant return to the Levin distribution center in Fitz Henry, South Huntington, and was greeted by hundreds of employees.

“I just want to tell everybody how excited I am to be back, running the company,” Levin said from the company’s huge warehouse.

Two days later, Art Van filed for Chapter 11 bankruptcy, as expected, in U.S. Bankruptcy Court for the District of Delaware.

• Levin said he plans to do three things in the short term:Establish a $2 million fund to provide grants and loans to Levin and Wolf employees to help them with health care costs;

• Consult with advisers and former Levin executives to develop a plan to bring Levin’s and Wolf back into business; and

• Hire a firm to monitor the way the bankruptcy court is treating customer deposits to the bankrupt company.

“My senior management team is committed to working on getting this back — whether in bankruptcy or outside bankruptcy, that’s to be determined. The goal is to work on this over the next few weeks,” he said.

Levin continued, “I’m terribly disturbed by the disruption that this is causing to our dedicated employees. My message to them is that I’m not giving up on getting this business back.”

The trade publication Furniture Today reported Thursday that the bankruptcy trustee is asking the court to reject the liquidation deal, which does not include the 44 stores that Levin agreed to buy.

The $180 million bankruptcy is one of the largest ever in the retail furniture business.

Robert Levin said his deal called for him to take possession and begin operating the Levin and Wolf stores as early as the second week in April, but Art Van was to continue funding all of the operatons until then.

“They had to cover the payroll for 1,200 people, keep the heat on and pay April rent to 45 landlords. Given the current enviornment with coronavirus, they didn’t want to do that,” Levin said.