DETROIT (WWJ) - With Art Van starting up its "going out of business" sale Friday, some customers are concerned about warranties and making payments.
It was announced Thursday that Art Van would be selling off all of its stock and closing its stores in an effort to settle up with creditors as the fortunes of the well-known Midwest furniture chain have fallen in recent years. Liquidation sales begin Friday at all Art Van, PureSleep, and Scott Shuptrine Interiors stores.
While many are hoping to cash in on a good closeout bargain, other customers are worried about warranties, which likely will not be honored should Art Van file for bankruptcy, according to WWJ Legal Analyst Charlie Langton.
"The general rule is that warranties likely will not be honored by Art Van," said Langton. "That warranty is no good unless the manufacturer will assume the damage, if there is such a thing."
That news doesn't sit will with customers like Edward Moore, who spent $6,000 on new furniture in November with an extended warranty.
"I feel a little mad, ashamed because they are going out of business" Moore said. "I felt good purchasing the warranty just in case something might go wrong with it. Now my warranty is no good."
Other customers who still owe on purchases can't stop making payments, either, just because the company is going out of business.
"Those on a payment plan must continue making those payments, or someone will eventually sue you," said Langton.
Art Van is telling customers with concerns to contact their team at 888-427-8826.