Former Furniture Brands winding down operations
Now that bankrupt Furniture Brands International has completed the sale of most of its assets to KPS Capital Partners, it’s time to wind down what’s left of the company.
To that end, Furniture Brands is now FBI Wind Down Inc.
Former FBI chief administrative officer, general counsel and corporate secretary Meredith Graham, 41, is leading FBI Wind Down as it closes its books and ties up loose ends. She’ll be paid her base salary of $286,000 on a pro-rated basis. She’ll be employed up to six months.
KPS completed its $280 million purchase of Furniture Brands on Nov. 25, getting Lane, Broyhill, Thomasville, Drexel Heritage, Maitland- Smith, Henredon, Hickory Chair, Pearson, La Barge and Lane Venture.
KPS put all of the brands under control of a new company, Heritage Home Group, which has assumed Furniture Brands’ former website.
Lane Furniture Industries employed about 1,400 people in Northeast Mississippi prior to Furniture Brands’ Sept. 9 Chapter 11 bankruptcy filing. It’s not known how many remain employed at Lane or at the other brands. However, KPS said it would offer employment to most of the employees of the brands.
Also as a result of the KPS purchase, Ralph Scozzafava, the former CEO of Furniture Brands, and Vance Johnston, its former CFO were ousted from the company. Also let go were the presidents of Lane and Hickory Chair.
In addition, the former board of directosr for Furniture Brands – Ira D. Kaplan, Ann S. Lieff, Aubrey B. Patterson, Dr. George E. Ross and Scozzafava – was let go.
After the sale last week, Raquel Vargas Palmer, a partner in KPS said, “This is the beginning of a new era for Heritage Home Group and its brands. The company has a new owner, a new CEO, a new board of directors and a new strategic direction. Heritage Home Group launches with truly iconic brands, a solid financial structure and access to KPS’ financial resources and expertise.
“We strongly believe in the fundamental value of this business and the significant growth potential that can be unlocked through focused investment in our brands. We are proud to welcome the many Furniture Brands associates who are joining Heritage Home Group, and we look forward to working together to build a thriving and profitable company. “