Deal For Robert Levin To Buy Back Levin Furniture Falls Through
PITTSBURGH (KDKA) - Levin Furniture is closing, resulting in a loss of 1,500 jobs just weeks after former owner Robert Levin announced he was buying back the company.
Earlier in March, Robert Levin told employees we was going to rescue his family business.
However, on Friday, Levin said the parent company of Levin Furniture and Wolf Furniture terminated the agreement to sell the businesses back to him.
"Two weeks ago, I joyously announced that I had agreed to buy back Levin Furniture and the Pennsylvania Wolf stores out of bankruptcy," Levin said in a press release.
"Today, I have learned that the parent company of Levin's and Wolf is unwilling to sell to me on the terms of our letter of intent. This is horrible."
The press release goes on to say that the parent company reported "vast reductions" in business due to the coronavirus pandemic and store closures as the reason for not seeking approval of the sale to Levin in bankruptcy court.
Levin says he is establishing a fund of $2 million to give grants and loans to Levin Furniture and Wolf Furniture employees "to help them with their healthcare costs during this time of uncertainty."
Levin says he'll be developing a plan to bring Levin and Wolf back into business and will hire a firm to monitor the way bankruptcy court treats customer deposits that were given to the now-bankrupt company.
Stay with KDKA for the latest on this developing story.
