Saving jobs, legacy, Robert Levin buys back furniture empire bearing his family's name
Levin Furniture’s former owner on Thursday entered the chain’s Monroeville store along Route 22 to the cheers of employees and managers — whose jobs he’d just saved.
Robert Levin raised his arms in triumph as, in the background, the store’s sound system played the Mike & The Mechanics song “All I Need Is a Miracle.”
The “miracle” was Levin’s announcement that he is buying back his family’s business for an undisclosed sum after a “last-minute” deal with Michigan-based parent company Art Van Furniture LLC, which is entering bankruptcy.
“It went down to the wire. We signed the deal at 8 o’clock (Wednesday) night,” he said. “I’m thrilled to be back leading this wonderful company.”
There were hugs all around as an ebullient Levin, 63, reassured employees like sales manager DawnMarie Davin that their jobs were secure.
“A lot of employees are excited,” said Davin, who held a bouquet of flowers for Levin.
A century after his grandfather, Sam Levin, founded the store in downtown Mt. Pleasant, Robert Levin said he was delighted to be back after a short-lived retirement.
Levin’s was sold to Art Van in 2017, the same year Art Van was acquired by Boston-based private equity firm Thomas H. Lee Partners LP.
In February, Detroit news outlets reported the owner was seeking a buyer for Art Van, one of the biggest furniture retailers in the Midwest. Art Van would only say that it was mulling a number of financial options with “creditors, investors and landlords” to sustain the company’s operations.
That news was “devastating” to hear, Levin said. “I never in a million years expected that when I sold the company, that it would be put into a situation that was so difficult,” he said.
It was then that talks began between Levin and Art Van. “This happened so fast,” he said.
Art Van announced Thursday it was entering Chapter 11 bankruptcy. The company will close its stores and liquidate assets unless a buyer can be found.
“Despite our best efforts to remain open, the company’s brands and operating performance have been hit hard by a challenging retail environment,” Diane Charles, Art Van Furniture spokeswoman, said in a statement.
The demise of one of the country’s largest furniture chains came in part from an overzealous expansion strategy by “a private equity owner that loaded the company with debt and lacked industry insight,” according to Furniture Today, which covers the industry. That was followed by the loss of several people in senior leadership positions, including its CEO — whose replacement lasted only 15 months.
Robert Levin called the impending closing one of the biggest losses in the retail furniture industry in recent years. Despite the cheers and Champagne, Levin said Thursday was “bittersweet” because of the impending job losses at Art Van.
“The extent of the financial difficulties of the parent company only became known in the past month,” he said. “Levin Furniture has been, and continues to be, a successful company, but it became entangled in the financial problems of the parent company.”
Levin had sales of $220 million in 2017, the year it was sold, and has the No. 1 market share in the markets where it operates, Levin said.
The agreement includes acquiring Levin’s Pennsylvania and Ohio assets and Altoona-based Wolf Furniture, which Art Van also bought in 2017.
“I’m thrilled to welcome the Pennsylvania Wolf associates to our Levin family and look forward to getting to know them,” Levin said.
“Most importantly, we’ve saved 1,200 jobs (at both Pennsylvania companies),” he said.
Levin said he is optimistic about final approval of the deal by the bankruptcy court, and he acknowledged the support of lenders KKR and Wells Fargo.
In the meantime, customer deposits are “safe and secure,” and vendors are working to get Levin stores fully restocked, he said.
“We have a little backup on some inventory issues, so it may take a while to get our trucks rolling and furniture and mattresses delivered,” Levin said. “It’s just a matter of time before we’re back firmly on our normal procedure of very quick delivery.”
Jim Kunkel, executive director of the Saint Vincent College Small Business Development Center in Unity, called the development “unusual” and “unconventional” — but good for Southwestern Pennsylvania.
Kunkel said brick-and-mortar stores like Levin face enormous pressure from the rise of e-commerce and changes in people’s shopping habits.
“If you look at just locally what we’ve seen with large retailers in the area … all have been victims of the retail apocalypse,” he said.
“It strikes me that this is an act of devotion or dedication to the community,” Kunkel said. “For Mr. Levin to take on this reacquisition, I just think it’s so inspirational. It’s downright encouraging to see because the dynamics (in retail) have changed so much.”
Founded in 1920, Levin Furniture has 35 furniture stores and mattress showrooms in Southwestern Pennsylvania and northeastern Ohio. Levin has 635 employees in Pennsylvania, including the corporate office and distribution center in Fitz Henry, and 385 employees in Ohio.
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