Newly Formed Loves Furniture Hit With Lawsuit
Loves Furniture made a big splash when it announced its formation last year and then quickly bought up the bankrupt Art Van Furniture locations around the region. Loves corporate offices are in suburban Detroit. The parent company, U.S. Assets, is a private equity firm and located in Dallas. Loves was able to reopen many of the former Art Van stores in the region including locations in Battle Creek, Portage, Jackson, and more than a dozen others.
Now the company is in the process of closing several stores in Michigan. Last month, Loves CEO Mack Peters admitted to some issues getting supplier invoices paid. Part of the reason he said was a shortage of product to be able to sell to customers at its stores. At least one supplier is tired of waiting and is filing a lawsuit to get paid. Fusion Furniture and its parent company, Southern Motion, are filing a federal suit demanding payment for nearly $2 million in unpaid product invoices for furniture delivered to Loves.
The suit alleges Loves agreed to buy furniture from Fusion and guaranteed payment for all money owed between June and December. The company claims it contacted Loves last month as a reminder of the outstanding payment and as of the date of filing its lawsuit, had not been paid. Southern and Fusion are asking the court to order payment along with court costs, and attorney fees. When announcing the closing of some of its just-opened stores in Michigan, Loves CEO Mack said the company was not running away but simply consolidating operations and closing stores that it realized may have been too close to each other.