Dear Levin and Wolf Furniture Customers,

Due to the unprecedented circumstances related to COVID-19 and the resulting, and sudden, negative economic impact, consistent with guidance issued by federal, state and local public health authorities we have made the difficult decision to suspend all sales operations in all of our stores, effective immediately.

With the continued concerns related to COVID-19 and the loss of personnel, we are unable to keep the Smithton, PA and Bellwood, PA warehouses or the stores open for Customer Pick Up (CPU) at this time. We will provide further updates to LevinFurniture.com and WolfFurniture.com websites once we have them.

We know customers will have questions regarding customer service policies and many other important topics. Our operational teams are working diligently to finalize and document those details, and we will communicate them to you as soon as possible. We ask for your patience.

We would like to extend our sincere empathy for the extraordinary hardship so many of our customers, employees and communities are facing. Unfortunately, a confluence of factors has left us with no alternative at this time but to take this action and notify you in as orderly way as we possibly can.

We thank you for your patronage and hope you and your families stay safe and well during this challenging time.

AVF Holding Co. (which includes Art Van, Levin And Wolf) Bankruptcy Frequently Asked Questions (FAQ) Guide

General Questions

Why are Art Van’s bankruptcy cases converting into Chapter 7 liquidation?

AVF Holding Art Van’s Chapter 11 cases are converting to Chapter 7 because the company no longer has the funds to support the obligations of continuing a Chapter 11 liquidation due to the unforeseeable and significant negative impact the current public health crisis had on the going-out-of-business sales and the company’s other operations. When the conversion to Chapter 7 is effective, an interim trustee will be appointed who will take over the company’s affairs and administer its assets. Future decisions about matters such as disposition of the company’s assets and the allowance and payment of claims against the company will be controlled by the trustee, acting under the supervision of the Bankruptcy Court, rather than the company’s existing management.

Why can’t the company remain in Chapter 11 and resume going-out-of-business sales once the COVID-19 pandemic passes?

There is significant uncertainty about when the COVID-19 pandemic will resolve in the areas where the company’s stores and other operations are located. In addition, given the negative impact the COVID-19 pandemic is having on the economy, significant uncertainty exists as to whether the going-out-of-business sales would be successful when resumed. Without additional financing, at this time, the company does not have sufficient cash on hand to bridge to a point when it is realistic to expect that going-out-of-business sales could resume. Further, none of the company’s existing secured lenders are willing to extend it additional credit at this time, and the company has no realistic ability to obtain financing from any other source.

What happened to the potential acquisition of Levin and Wolf furniture businesses and related assets by entities affiliated with Robert Levin?

Art Van was informed on March 19th by Robert Levin’s representatives that Mr. Levin and his affiliated entities were unwilling to proceed with the transaction at that time. Robert Levin (or anyone else) still has the option to buy these assets and/or other assets of the company through the Chapter 7 proceedings.

Will the stores re-open at any point?

There is no plan to re-open any of the stores at this time. Any future decisions to reopen stores, whether to conduct going-out-of-business sales or for another reason, will be made by the Chapter 7 trustee in consultation with the company’s secured lender or, if a sale occurs, the purchaser thereof.

Will there be opportunities for work at Art Van during the Chapter 7 liquidation?

The Chapter 7 trustee will determine if there are any short-term opportunities available. For resources deemed critical by the trustee, the trustee will contact those individuals and discuss contracting for services. A trustee has not yet been assigned so Art Van does not know what functions the trustee will need performed.

Who is the trustee and how can I contact him/ her if I have other questions?

The initial Chapter 7 trustee will be appointed from a panel of standing trustees by the Office of the United States Trustee for the District of Delaware. The identity of the Chapter 7 trustee will not be known until after the conversion of the cases becomes effective. Notices concerning the conversion of the cases, which will include the trustee’s name and contact information, will be mailed or electronically served on most interested parties after the conversion to Chapter 7 occurs.

Questions from Employees

Will I be receiving any additional pay?

AVF Holding Co. sought and received permission from the bankruptcy court to pay wages, salaries and commissions owed to its employees through the date of each employee’s separation from the company or April 5, 2020, whichever date is earlier. Unless the Chapter 7 trustee decides to re-hire certain employees, this is expected to be the final payroll for employees. The commission portion of this final payroll is calculated on the basis of customer purchases actually delivered through March 31, 2020.

Will I be receiving any additional healthcare coverage?

Although AVF Holding Co. sought authorization from its secured creditors and the Bankruptcy Court to pay employee healthcare claims submitted prior to the date of each employee’s separation from the company, it was determined following proceedings before the Bankruptcy Court that the company had insufficient resources available to make those payments at this time. As a consequence of the company’s deteriorating financial situation, adverse rulings by the Bankruptcy Court and lack of consent by the company’s secured creditors, the company is regrettably not able to honor further obligations under its selffunded healthcare and dental benefits plans which are being terminated.

For further clarity, for medical expenses incurred that have been processed and paid, those matters are closed. For medical expenses incurred that have not yet been processed or paid, the company will not be able to satisfy those costs at this time, and the company does not know if those costs will be satisfied. As stated, the Chapter 7 trustee, in consultation with the company’s secured lender, will determine how to manage the allowance and payment of these claims.

What other healthcare coverage options can I pursue at this point?

For those who were covered by Blue Cross/Blue Shield at the time of termination, Blue Cross has agreed that it will permit you to purchase a policy directly with them (and not through the marketplace) which will be retroactive to your last day of coverage. Blue Cross has designated specific account representatives to that you can reach at 1-855-288-6719 if you are under 65 or 1-855-833-3462 if you are over 65.

You may also purchase insurance directly through other health care companies but the policy will not be retroactive. You may also purchase insurance on the marketplace. Insurance purchased on the marketplace is effective on the 1st day of the month after your purchase (so if you purchase insurance in April it would be effective May 1st).

Some resources who can assist you in finding insurance are GetInsured: getinsured.com. Discovery Marketplace: discoverymarketplace.com; or United Healthcare direct: healthmarkets.com.

Some of you may also qualify for a subsidy towards your care. Please make sure to check with potential insurers to see if you qualify.

Questions from Consumers

I purchased furniture from Art Van that I have not yet received. Will the furniture be delivered? If not, will I receive a refund from Art Van?

Unfortunately, because of the Company’s need to seek bankruptcy protection, the cessation of all of the Company’s retail operations that followed the COVID-19 pandemic and now the Court’s conversion of the Company’s Chapter 11 cases to Chapter 7, the Company is unable to fill any customer orders at this time, including those for which the Company’s customers have already paid in full or part, but have not yet received. Although the final decision now rests with the Chapter 7 trustee and the Bankruptcy Court, the Company does not know whether the Company will ever be able to complete these orders or refund amounts paid. Accordingly, the Company urges customers to consider filing a proof of claim with the Bankruptcy Court. Information about how to file a proof of claim can be found at the following link maintained by the Bankruptcy Court: www.deb.uscourts.gov/claimsinformation. Contact information for the Bankruptcy Court and details about Company’s bankruptcy cases can be found at the bottom of this FAQ.

In addition, if you made a purchase via credit card, depending on the terms of your cardholder agreement, you may be able to receive a refund by filing a dispute with your credit card company.

Where did the money go that I deposited on furniture?

To the extent the company actually received the cash from customer deposits, it currently sits in a cash collateral account that is subject to a cash collateral agreement with the company’s secured lender. In addition, Art Van’s credit card processors have held back significant cash from customer deposits for the purpose of reserving against consumer credit card chargebacks. Funds held in reserve by the credit card processors were never received by Art Van.

Will my warranty be honored?

Unfortunately, because of the Company’s need to seek bankruptcy protection, the cessation of all of the Company’s retail operations that followed the COVID-19 pandemic and now the Court’s conversion of the Company’s Chapter 11 cases to Chapter 7, extended warranties extended by Art Van, Levin or Wolf can no longer be honored. The Company urges customers to consider filing a proof of claim with the Bankruptcy Court. Information about how to file a proof of claim can be found at the following link maintained by the Bankruptcy Court: www.deb.uscourts.gov/claims-information. Contact information for the Bankruptcy Court and details about Company’s bankruptcy cases can be found at the bottom of this FAQ. However, if you purchased a warranty at Art Van that was extended by ServeCo, or from Wolf Furniture prior to May 1, 2019, that was extended by Guardsman, your warranty remains in place. To determine if your warranty was extended, please check the warranty document given to you when you purchased your warranty to see if it indicates that either ServeCo or Guardsman is the entity that issued your warranty. Also, please check with the manufacturer of your furniture to see if it is still within the manufacturers’ warranty.