Art Van Furniture Hits Snag Over Store Liquidation Terms

Bankrupt Art Van Furniture LLC must wait until at least next week to begin store closing sales because of concerns over its agreement with liquidators, a Delaware judge ruled.

Art Van’s liquidation consulting agreement with a joint venture between Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC “is too creative and too important” to be considered before a committee of unsecured creditors is in place to vet the arrangement, Judge Christopher Sontchi said during a hearing Thursday at the U.S. Bankruptcy Court for the District of Delaware.

Sontchi’s concern stems from a deal Hilco and Gordon Brothers made ...