KPS Capital Partners, which has offered $280 million for Furniture Brands International, was the only qualified bidder for the company in the U.S. Bankruptcy Court of Delaware, according to Furniture Today.
KPS was the stalking horse bidder, which meant its offer was the minimum bid.
When Furniture Brands filed for Chapter 11 on Sept. 9, the original stalking horse bidder was Oaktree Capital Management, which offered $165 million for the company’s assets, excluding Lane. But KPS emerged, and a bidding war ensued. KPS’ current offer is $20 million more than Oaktree’s last offer.
Earlier Wednesday, the largest shareholder in Furniture Brands, Samson Holding, said it would not enter a bid despite saying earlier this month it would.
The bid deadline was moved up two weeks to 9 a.m. today, and Samson said it could not get everything in order to meet the deadline. Essentially, the company said the deadline made it too difficult to do so. And, speculation was that the deadline was moved – at Furniture Brands’ request – so that Samson couldn’t make the deadline.
KPS has said earlier it wants to buy all of Furniture Brands, including Lane Furniture, and offer jobs to most employees.
The bid must now receive court approval, which could come Friday.