AND HEALTH OFFICIALS WARN, THIS IS NOT A DRILL.
>> Devin: FIRST, ART VAN, A
METRO DETROIT INSTITUTION, IS
DONE!
DONE! >> THREE YEARS AGO, WE WERE THIS
VIBRANT RETAILER.
VIBRANT RETAILER. AND NOW WE’RE GONNA BE GONE.
>> Devin: ALL STORES SET TO
CLOSE AS GOING OUT OF BUSINESS
SALES START TOMORROW.
TOPPING OUR NEWS TODAY AT 5:00,
THIS MORNING, EMPLOYEES WERE
TOLD THEY DID NOT SEE A PATH
FORWARD AND THE FURNITURE CHAIN
WOULD CLOSE.
WOULD CLOSE. >> Kim: IF YOU NEED A LOOK AT
HOW BIG IT IS, THIS WILL DO IT.
THIS IS A MAP OF ALL THE ART VAN
STORES IN A 100 MILE RADIUS, 27
STORES, AND THAT DOES NOT
INCLUDE ART VAN PURE SLEEP
STORES.
STORES. >> Devin: 5500 PEOPLE WORK FOR
THE COMPANY AND WILL MOST LIKELY
LOSE THEIR JOBS.
ADD TO THAT, MORE THAN 200
STORES SLATED TO CLOSE, A BIG
HIT FOR METRO DETROIT
COMMUNITIES.
COMMUNITIES. >> Kim: A LOOK AT THE IMPACT,
AND SPECIFICALLY THE
HEADQUARTERS IN WARREN.
>> Devin: LET’S START WITH HANK
WINCHESTER WITH MORE ON WHAT
CUSTOMERS NEED TO KNOW.
>> Hank: GOOD EVENING TO BOTH OF
YOU.
YOU. DISAPPOINTING NEWS FOR THE
EMPLOYEES ACROSS THE BOARD BUT A
LOT OF CUSTOMERS CONCERNED NOT
ONLY ABOUT RECENT PURCHASES BUT
WARRANTIES.
WARRANTIES. WILL THEY BE HONORED MOVING
FORWARD.
FORWARD. CLOSING MORE THAN 140 STORES,
NOT ONLY ALL OVER MICHIGAN BUT
THE MIDWEST.
THE MIDWEST. TODAY, A STEADY STREAM OF
CUSTOMERS, SOME LOOKING FOR A
BIG DEAL.
BIG DEAL. >> I’M LOOKING FOR WHATEVER
CATCHES MY EYE.
>> Hank: BUT MANY WONDERING WHAT
HAPPENS NOW.
HAPPENS NOW. I JUST BOUGHT FURNITURE HERE.
>> BACK IN JANUARY.
>> YOU BOUGHT SOMETHING IN
JANUARY?
JANUARY? >> YEAH.
>> YEAH. >> HAS IT BEEN DELIVERED YET?
>> NO, IT’S ON BACK ORDER.
>> Hank: S CAME IN LOOKING FOR
A REFUND.
A REFUND. >> I CAME AND GOT MY REFUND
BACK.
BACK. >> Hank: ANY PROBLEMS WITH THAT?
>> NO, IT WAS EASY.
>> Hank: WE SAW THEM REQUESTING
AND GETTING REFUNDS TODAY, BUT
DO IT NOW BEFORE IT GETS TIED UP
IN COURT.
IN COURT. WHAT ABOUT WARRANTIES?
THAT’S UP IN THE AIR.
YOU MAY HAVE BETTER LUCK
CONTACTING THE MANUFACTURER
DIRECTLY.
DIRECTLY. IF YOU CALL THE CUSTOMER SERVICE
LINE TODAY, YOU’LL LIKELY HEAR
THIS.
THIS. THE LINES ARE SIMPLY
OVERWHELMED, AS YOU WOULD
EXPECT.
EXPECT. AND WHAT ABOUT DEPOSITS ON
FURNITURE?
FURNITURE? HERE’S WHAT A BANKRUPTCY EXPERT
TELLS ME.
TELLS ME. >> SOME OF THE UNINTENDED
VICTIMS AND CONSEQUENCES ARE
PEOPLE WHO LEAVE DEPOSITS FOR
DELIVERIES AND NOW THEY’RE A
CREDITOR TO AN ENTITY LIKE ART
VAN SINCE FILING WITH AN
UNSECURED CLAIM IN THE
BANKRUPTCY WHICH MEANS NOT ONLY
ARE THEY NOT GETTING THE
FURNITURE BUT NOT GETTING THE
DEPOSIT MONEY BACK.
>> Hank: A LOT OF UNANSWERED
QUESTIONS FOR CONSUMERS.
BUT WE’RE TOLD THAT ART VAN WILL
BE WORKING TO ANSWER MANY OF THE
QUESTIONS.
QUESTIONS. FIND THE ANSWERS ON THE COMPANY
WEBSITE.
WEBSITE. WHEN YOU TALK ABOUT ART VAN, YOU
SAW THE COMPACT, SO MANY STORES,
SO MANY LOCATIONS ALL OVER THE
STATE OF MICHIGAN.
SO WHAT IS THE LOCAL IMPACT?
OVER TO MY COLLEAGUE PAULA
TUTMAN WITH THAT PART OF THE
STORY.
STORY. PAULA?
PAULA? >> Paula: HANK, YOU SAID IT.
THINK BACK AT THE MAP OF ALL THE
STORES, UNDERSTANDING THAT A
STORE CLOSING IN ANY OF THOSE
COMMUNITIES HAS A HUGE PACT, BUT
HERE IN WARREN, IT’S A GUT
PUNCH!
PUNCH! IN THE CITY OF WARREN, YOU CAN’T
SLING A RED HAT WITHOUT HITTING
AN ART VAN DELIVERY TRUCK.
THE COMPANY IS ON THE PRESENCE
WITH A MAMMOTH FLAGSHIP CAMPUS,
AND WITH A LAYOFF AS EARLY AS
MAY 5th, THOSE WHO LIVE IN THE
COMMUNITY ARE WORRIED.
>> I DON’T KNOW WHAT THEY’RE
GONNA DO WITH IT.
I REALLY DON’T KNOW.
>> Paula: WHAT ARE YOUR BIG
CONCERNS?
CONCERNS? >> MORE HOTELS AND MOTELS.
I DON’T WANT ANY OF THAT HERE.
>> Paula: AS THE MAYOR OF WARREN
NOTIFIED AT ABOUT 8:30 THIS
MORNING THAT HIS CITY WOULD BE
LOSING THE 262 EMPLOYEES AT THAT
FLAGSHIP STORE AND THE CITY
WOULD BE LOSING $2.2 MILLION IN
TAX REVENUES, THERE WAS SHEER
UNADULTERATED ANGER.
UNADULTERATED ANGER. >> THIS WAS DONE BY AN
INVESTMENT COMPANY THAT HAS GONE
IN, AND IN THE PAST COUPLE OF
YEARS, THEY HAVE BASICALLY
LIQUIDATED AND SOLD ALL THE
ASSETS.
ASSETS. >> Paula: IT’S NEARLY 3% OF THE
CITY OF WARREN’S TOTAL OPERATING
BUDGET.
BUDGET. WHILE THERE ARE OTHER BOW
HEMOUTH HEADQUARTERS IN THE
CITY, THIS IS TAKEN OUT OF
SCHOOLS, FIRE, AND POLICE.
>> THEY MADE A COMMITMENT TO THE
STATE OF MICHIGAN AND WARREN,
AND WE HELPED THEM WITH TAX
INCENTIVES AND THEY SHOULD BE
HELD ACCOUNTABLE.
HELD ACCOUNTABLE. >> Paula: AND THE NEW STORE IN
CANTON TWO YEARS AGO WHILE THE
ASSETS OF THE 60-YEAR-OLD
FAMILY-OWNED COMPANY WERE BEING
SOLD OUT FROM BENEATH THE
FOUNDATION OF THE COMPANY.
>> I THINK THERE SHOULD BE A
NATIONWIDE LAW THAT SAYS TO
INVESTMENT COMPANIES, YOU CANNOT
TAKE OVER A SUCCESSFUL COMPANY
LIKE ART VAN FOR 60 YEARS AND IN
LESS THAN THREE YEARS, YOU
LIQUIDATE, SELL THE ASSETS AND
THROW THE EMPLOYEES OUT IN THE
STREET.
STREET. THAT’S WRONG!
THAT’S WRONG! >> Paula: HE INDICATED HE
BELIEVES THE INVESTMENT COMPANY
HAS SOLD MANY OF THE BUILDINGS
BUT IT’S NOT CLEAR WHETHER THEY
SOLD THAT PARTICULAR CAMPUS ON
14 MILE ROAD.
THAT IS A HUGE FOOTPRINT.
AND HE IS CONCERNED AND ANXIOUS
TO MAKE SURE IT DOESN’T SIT BUT
IT DOES INDEED GET FILLED WITH
SOME SORT OF COMPANY.
GUYS?
GUYS? >> Kim: INDEED.
OUR COVERAGE CONTINUES.
WE’LL HELP ANSWER THE QUESTION,
HOW DID IT COME TO THIS?
>> Devin: AND WHAT YOU NEED TO
KNOW ABOUT THE GOING OUT OF