Yesterday was the day after the going-out-of-business announcement of Art Van Furniture.  The Metro Detroit based company folded just three years after being purchased by a private equity firm, Thomas H. Lee Partners. The firm purchased the Midwest largest retail furniture and mattress retailer, founded in 1957 by Archie Van Elslander.   Thriving for years, popular with first time home buyers, the company grew to 167 stores in nine states.

Due to the resilient professionalism of a wonderful sales veteran, and the expertise of the customer service administrator, —  we received a suitable replacement for a significant order of living room furniture which was still on delivery.  We did not suffer a loss.

Others caught up in the “burn down” of this institution: customers having paid for furniture not yet delivered; former employees absorbing the shock of loss of place of work and livelihood; vacant real estate; manufacturers and vendors now without this Midwest outlet. 

I wonder about the experience, the expertise that a private equity firm might have about the retail furniture business?  Did they think a pile of money on the table would suffice to insure a healthy company apart from the patient application of wisdom derived from years of experience in the furniture business?  Operating a company is nothing but problem solving, one problem after another.

A company of 61 years in the making, — gone in three years….  It will not be replaced.

Likely the performance trend of the company did not satisfy their metrics, — they cut the cord.

Are we not a ship of fools, this lock-step, servile allegiance that we have to capitalism?