>> Devin: GARY JONES FACING SOME VERY SERIOUS FEDERAL CHARGES.
>> Kim: THE FURNITURE CHAIN WITH
STORES ALL OVER METRO DETROIT IS
GOING OUT OF BUSINESS.
MANY ARE WONDERING WHY.
>> Devin: A LOT OF FOLKS STILL
TRYING TO WRAP THEIR HEADS
AROUND THE IDEA OF ART VAN
FURNITURE NO LONGER BEING
AROUND.
AROUND. >> Kim: BUT THAT’S THE WORD THAT
CAME DOWN TO EMPLOYEES.
RIGHT NOW, MORE THAN 200 STORES
ARE SLATED TO CLOSE, INCLUDING
THE FURNITURE STORES, PURE SLEEP
AND SCOTT SHUPTRINE.
>> Devin: 5500 PEOPLE WILL LOSE
THEIR JOBS.
THEIR JOBS. IT WAS SOLD TO AN INVESTMENT
COMPANY IN 2017 AND IS EXPECTED
TO FILE FOR BANKRUPTCY.
THE FIRE SALE MAY START AS SOON
AS TOMORROW.
AS TOMORROW. HANK WINCHESTER HAS MORE ON
THAT.
THAT. BUT LET’S START WITH HOW WE GOT
HERE.
HERE. ROD MELONI HAS A LOOK AT WHAT
LED TO THIS DECISION TO CLOSE
ALL ART VAN STORES.
I’S BEEN A SHOCKER!
>> Rod: IT IS.
AND YOU SAID IT SO WELL EARLIER,
IN THAT ART VAN IS SO MUCH A
PART OF METRO DETROIT THAT THE
ADS ON TELEVISION ARE CONSTANT
DAY AND NIGHT.
IF YOU LIVE ANYWHERE IN METRO
DETROIT, YOU LIVE WITHIN A
STONE’S THROW OF AN ART VAN
FURNITURE.
FURNITURE. BUT THE COMPANY SOLD OUT TO A
BOSTON HEDGE FUND BACK IN 2017
AND SADLY AND RATHER
SPECTACULARLY, THEY CRASHED THE
COMPANY INTO A ROCK!
ART VAN ELSLANDER SOLD HIS
COMPANY TO A BOSTON HEDGE FUND,
AND HE SADLY DIED THE NEXT YEAR.
PLUNKETT CLOONEY’S DOUG
BERNSTEIN SAID A LOT OF THINGS
WENT WRONG QUICKLY FOR THE NEW
COMPANY.
COMPANY. >> YOU’VE GOT A LOT OF DEBT, A
LOT OF EXPANSION, AND PEOPLE’S
SHOPPING HABITS CHANGED.
>> Rod: ONLINE SHOPPING IS
CHANGING THE GAME.
AND OTHER RETAILERS DIDN’T HELP.
THE VAST MIDWEST REACH WORKED
AGAINST IT.
AGAINST IT. >> BRICK-AND-MORTAR IS
EXPENSIVE.
EXPENSIVE. AND THE MORE OVERHEAD YOU HAVE.
YOU HAVE TO BE VERY EFFICIENT
AND AHEAD OF THE CURVE.
AND UNFORTUNATELY, THAT DOESN’T
SEEM TO BE THE CASE.
>> Rod: PATRICK O’KEEFE TELLS
LOCAL 4, HE BELIEVES RENTS
CAUSED MUCH OF THE PROBLEM.
>> THE LANDLORDS TOOK ADVANTAGE
AND UPPED THE RENTS AND MADE IT
HARD TO SURVIVE.
>> Rod: BERNSTEIN SAID ALL YOU
NEED TO KNOW IS FOUND IN
RECALLING WHAT HAPPENED WITH
TOYS ’R’ US.
>> WHEN THE HEDGE FUND COMES IN
AND BUYS IT, THEY LOAD IT UP
WITH DEBT AND CARRY IT AS LONG
AS THEY CARE TO, AND THEN SAY,
OH, WELL, WE TRIED AND WE’RE
DONE.
DONE. >> Rod: AND THEY’RE SO DONE,
THAT THERE’S QUITE LITERALLY
NOTHING LEFT TO EVEN BUY.
THE WORD IS THE FAMILY WANTED TO
GET SOMETHING BUT THERE’S
NOTHING TO HAVE.
SO SADLY, THEY HAVE TO CLOSE THE