Levin backs out of repurchasing family business
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WASHINGTON, Pa. -- The descendant of the founders of Levin Furniture said on Friday he was canceling a deal to buy the company out of liquidation after the current owner closed stores amid fears of the spread of the COVID-19 pandemic.
Robert Levin, grandson of the eponymous founders and former owner/CEO of the company, said Art Van, which agreed two weeks ago to sell the family company, along with Wolf Furniture, wasn't following the terms of their arrangement from earlier this month.
Levin said he learned that Art Van, which is based in Warren, Mich., had fired employees of Levin Furniture and Wolf, and closed both chain's stores.
"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 and Wolf had about 1,200 employees. Levin had stores in 39 locations in Pennsylvania and Ohio - furniture, bedding and clearance stores. They include a Levin Furniture store at Ohio Valley Mall in St. Clairsville.
Art Van, which bought Levin in 2017, filed for Chapter 11 bankruptcy March 9, days after Levin's announcement. It entered a liquidation sale March 6, but suspended that sale Thursday because of the highly contagious coronavirus, the Detroit Free Press reported.
The newspaper added that it was unclear whether or not Art Van's stores would reopen.