Art Van Furniture Gets OK to Access Working Cash in Bankruptcy

Bankrupt Art Van Furniture LLC received permission to use operational cash which is subject to a creditor lien as the furniture retail chain seeks to quickly sell portions of the business and inventory.

The Michigan-based retailer was approved to access working capital on Tuesday by the U.S. Bankruptcy Court for the District of Delaware during its first day Chapter 11 hearing. The company filed for bankruptcy earlier this week, citing a strain on liquidity due to declining profits and sales at its furniture and mattress stores across eight mostly midwestern states.

Art Van attorney Greg Werkheiser said the goal of ...