WARREN, Mich. (WXYZ) — The impact of the Art Van bankruptcy goes beyond the significant loss of the company and its workers' jobs. The bankruptcy filing submitted in court this week shows there are numerous companies owed millions. Many are right here in Michigan and provided advertising, services and furniture.
“Honestly, it was heartbreaking," said Brandon Yowler, CEO of L. J. Gascho Furniture. "Our family has a 31-year relationship with Art Van furniture and more specifically the Van family.”
Gascho is a furniture manufacturer in Pigeon, Michigan. Yowler told 7 Action News Reporter Kim Russell over FaceTime they will survive.
“We have made a huge effort in the last five years to expand our brand nationwide, so we have coast to coast distribution,” he said.
Still, the loss of a major customer is devastating. He had to lay off several people. He says the company stopped delivering furniture to Art Van a while ago because it was not paying bills. Gascho has furniture customers have ordered through Art Van in storage. While they normally don’t sell direct to consumer, if you ordered their furniture from Art Van they want to hook you up. You can reach out through http://www.gaschofurniture.com.
“I have a warehouse full of their furniture, several hundred thousand dollars of it made specifically for Art Van customers," Yowler said. "We are working directly with them."
According to a bankruptcy, Art Van has more than 50,000 creditors and owes them between $100 million and $500 million.
In the meantime, Art Van continues to sell inventory and say goodbye to loyal customers who have been shopping there for decades.
On Saturday and Monday, police had to respond to control traffic of people trying to pick up orders at the Art Van Warehouse on 14 Mile in Warren. The company says it reorganized traffic flow on property to the warehouse to ease traffic issues. It also opened early to prevent a long line from the start. The wait time to get furniture on Tuesday was three hours, which is down from six hours on Monday. The company says it is still offering furniture delivery.