Levitz Furniture
Encyclopedia
Levitz Furniture was a nationwide chain
of American furniture stores that helped create the "furniture warehouse" genre of retail furniture sales. It was in business for nearly 100 years before liquidating
in bankruptcy
in early 2008.
in 1910 by Richard Levitz.
In the 1960s Levitz successfully pioneered selling moderately-priced brand name furniture from a warehouse
-style store. It suffered in the 1990s as consumers began to prefer showroom
sales that featured spaces arranged to look like actual rooms in houses.
The chain continued to expand in 2005, when they acquired Seaman's Furniture
and Huffman Koos
stores after bankruptcy.
s and jingle
s in the retail industry, "You'll love it at Levitz."
On December 21, 1998, Levitz announced it would close 27 stores and lay off 25% of its workforce. The company downsized its warehouse system from 65 to 17 sites.
The furniture market underwent a prolonged nationwide downturn after the 9/11 terrorist attacks, and was hurt again in late 2007 by the 2007 subprime mortgage financial crisis. Levitz filed for bankruptcy the final time in October 2007. As of that time it was operating nearly 80 stores, mostly in the Northeastern United States and on the West Coast, under the corporation PLVTZ LLC
. In October 2008, Levitz Furniture, with bankruptcy court approval, converted its Chapter 11 case to Chapter 7, and started liquidation sales.
The company was sold in bankruptcy to a group of bidders led by Hilco Merchant Resources, that began to rapidly liquidate its inventory and close all remaining stores.
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...
of American furniture stores that helped create the "furniture warehouse" genre of retail furniture sales. It was in business for nearly 100 years before liquidating
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
in bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
in early 2008.
Growth
The company was founded in Lebanon, PennsylvaniaLebanon, Pennsylvania
Lebanon, formerly known as Steitztown, is a city in and the county seat of Lebanon County, Pennsylvania, United States. The population was 25,477 at the 2010 census, a 4.2% increase from the 2000 count of 24,461...
in 1910 by Richard Levitz.
In the 1960s Levitz successfully pioneered selling moderately-priced brand name furniture from a warehouse
Warehouse
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
-style store. It suffered in the 1990s as consumers began to prefer showroom
Showroom
The word showroom has two distinct meanings including:-Marketing location:A showroom is a large space used to display products for sale, such as automobiles, furniture, appliances, carpet or apparel. The World's most famous locations for a showroom are the Champs Elysees in Paris or the 5th Avenue...
sales that featured spaces arranged to look like actual rooms in houses.
The chain continued to expand in 2005, when they acquired Seaman's Furniture
Seaman's Furniture
Seaman's Furniture was an American chain of furniture stores based in Woodbury, New York. The company was founded by Julius Seaman in 1933 with its first store in Brooklyn, New York...
and Huffman Koos
Huffman Koos
Huffman Koos was a chain of furniture stores. The chain was liquidated in 2005 and was acquired by Levitz Furniture. After liquidation, the company was resurrected in 2007 and founded a new chain....
stores after bankruptcy.
Marketing
The store is known for one of the most catchy sloganSlogan
A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose. The word slogan is derived from slogorn which was an Anglicisation of the Scottish Gaelic sluagh-ghairm . Slogans vary from the written and the...
s and jingle
Jingle
A jingle is a short tune used in advertising and for other commercial uses. The jingle contains one or more hooks and lyrics that explicitly promote the product being advertised, usually through the use of one or more advertising slogans. Ad buyers use jingles in radio and television...
s in the retail industry, "You'll love it at Levitz."
Bankruptcy and liquidation
The company is accused of having been poorly run for more than a decade. It declared Chapter 11 bankruptcy twice during the period, in 1997 and again in 2005, both times emerging after a corporate restructuring and the participation of new outside backers.On December 21, 1998, Levitz announced it would close 27 stores and lay off 25% of its workforce. The company downsized its warehouse system from 65 to 17 sites.
The furniture market underwent a prolonged nationwide downturn after the 9/11 terrorist attacks, and was hurt again in late 2007 by the 2007 subprime mortgage financial crisis. Levitz filed for bankruptcy the final time in October 2007. As of that time it was operating nearly 80 stores, mostly in the Northeastern United States and on the West Coast, under the corporation PLVTZ LLC
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
. In October 2008, Levitz Furniture, with bankruptcy court approval, converted its Chapter 11 case to Chapter 7, and started liquidation sales.
The company was sold in bankruptcy to a group of bidders led by Hilco Merchant Resources, that began to rapidly liquidate its inventory and close all remaining stores.