Several reports, including the Wall Street Journal, say struggling Furniture Brands International has hired restructuring lawyers and advisers.
Citing the WSJ report, the St. Louis Business Journal said Furniture Brands has asked the lawyers and advisers to look at options on how it can tackle its financial issues, including filing for bankruptcy protection.
As reported earlier, the St. Louis-based furniture manufacturer and distributer recently posted a $41 million quarterly loss. The company, parent of Lane, Broyhill, Thomasville, Drexel-Heritage, Maitland-Smith and other furniture brands, has nearly $118 million in debt, with less than $8 million in cash. It also faces and underfunded pension plan of some $200 million.
Furniture Brands last recorded an annual profit in 2006, and annual revenue has fallen by more than half since then.