Loves Furniture Files Plan to Turn Liquidation Over to Trustee

Loves Furniture Inc., the Midwest chain that launched last year from the ashes of Art Van Furniture, filed a bankruptcy plan that would hand over the job of liquidating its assets to a trustee.

The company’s plan, filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Michigan, would form a trust charged with liquidating remaining assets after the company completes going-out-of-business sales.

The plan would create multiple classes of creditors projected to receive less than they’re owed. The company didn’t provide estimated recovery amounts.

A trustee would have authority to distribute funds to creditors, administer outstanding claims, ...