WARREN, Mich. — A trustee of Art Van Furniture filed a lawsuit against the company’s former owners to recover money it says the family pulled out of the business before the 2017 sale. Art Van filed for bankruptcy in March of 2020.
The lawsuit claims Art Van sold properties to the current owner that were in debt, resulting in a lease cost of $46 million per year. The company claims it led to accrued interest rates from loans borrowed to pay for those debts.
As a result, the current owners paid $33.4 million a year in interest and lease obligations, which court documents say is more than the net income Art Van has ever brought in.
READ MORE: Art Van files for bankruptcy
The total value of those expenses is estimated at more than $105 million.