Back in November 24th’s Members’-only briefing, we highlighted how publicly-traded BDC, FS KKR Capital Corp. ($FSK), was having a wee bit of trouble with a small portion of its portfolio. It had designated several of its loans as “non-accrual.” At the time, the subject of our affection was the in-and-out-of-bankruptcy Acosta Inc. but we also highlighted the now-seemingly-soon-to-be-in-bankruptcy Art Van Furniture Inc. You can check the piece out here.

This weekend news surfaced that, indeed, Michigan-based and private equity-owned (Thomas H. Lee Partners) Art Van may be headed to the bankruptcy bin. If so, it would mark (only) the third retailer to end up in bankruptcy in 2020 (SFP Franchise Corp., a/k/a Papyrus, and Pier 1 Imports Inc. ($PIR)). Per the Detroit Free Press:

Private equity firm Thomas H. Lee Partners LP is in the process of working with advisers and creditors to find a possible buyer for the company and potentially filing for Chapter 11 bankruptcy, according to a report from Crain's Detroit Business. 

The leak got the communications machine working over time:

Art Van Vice President of Communications Diane Charles confirmed the company is in negotiations. 

“We are actively exploring a variety of options with our creditors, investors and landlords to ensure Art Van can continue serving our guests and our communities," Charles said in a statement to the Free Press. "It is premature at this time to comment further as no final decisions have been made. In the meantime, our stores are open, and it is business as usual.” 

“No final decisions have been made” is code for “no board resolution has yet been adopted that authorizes a chapter 11 filing at this time.” But, rest assured: one is coming.