Archive for the ‘Saltillo’ Category
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. Read the rest of this entry »
Stash Home, which sells name-brand furniture at discounted prices, should be opening its Tupelo store around Christmas in the
Tupelo Commons retail development on North Gloster Street .
What is Stash exactly? From its website: “Our team buys factory overruns, closeouts, overstocks, factory closings, factory direct products, photography samples and designer trials. All product is new, high-quality merchandise at 30-75 percent off, and often more. Stash gives you top brands at the lowest prices possible.”
The company now has two stores – one in Memphis and one in Oxford, but is opening in Tupelo and looking to expand in more locations next summer.
Stash is the brainchild of DSG, or the Dufresne Spencer Group, the Saltillo-based company that owns 19 furniture stores – including 14 Ashley stores – in Arkansas, Alabama, Kentucky, Mississippi, Tennessee and Texas. It recently acquired seven KHF Holding stores in Kentucky and Indiana
The Tupelo store covers 15,000 to 16,000 square feet, and it will employ about 10 people.
Stash is headed by Greg Roy, the former Lane Furniture and Furniture Brands executive who joined DSG in August.
“They’ve been doing this since 2009,” Nicholas said.
Indeed, Furniture Brands began using Watkins & Shepard for its Broyhill and Henredon furniture divisions in a move to be more economical and efficient with its shipping operations.
“Our understanding is that Watkins will make offers to current (Action) employees, though they’re not guaranteed,” Nicholas said.
Action employees were informed of the move over the weekend and told the change would take affect on Monday. Action employs about 60 drivers, a source told the Daily Journal.
According to its website, Watkins & Shepard is the largest less-than-truckload specialized furniture carrier providing service to the 48 contiguous United States and the three western provinces of Canada.
“The professional handling of all products in our supply chain results in delivering 99.8% of all shipments error free; one of the lowest claims ratios in the industry,” the company claims. “Warehousing, inventory management systems, container unloading, distribution, LTL freight management and consolidation are value added services the company provides through a network of 20 terminal facilities strategically located throughout the United States.”
Furniture Brands filed for Chapter 11 bankruptcy protection in September. The bankruptcy court in Delaware will look at bids for the company next week. The stalking horse bidder is KPS Capital Partners, which has offered $280 million for the company.
After 27 years and 10 million meals, the McDonald’s restaurant in Pontotoc needed a little facelift.
Well, make that a total makeover.
The restaurant officially reopened today after a 70-day project that demolished the old building and built a new one.
“This is something the people of Pontotoc deserved, something that was needed,” said Demetris Patterson, the store’s general manager.
The restaurant is owned by Hudson Management Corp. the Tupelo-based McDonald’s franchisee that owns three restaurants in Tupelo and one each in Pontotoc, New Albany and Saltillo.
HMC employs about 600 people company-wide.
The new restaurant features double drive-thru lanes, a new contemporary interior, digital menu boards, interior seating for 75 and a new expanded and efficient kitchen.
It is Hudson’s third new restaurant since 2008. The Saltillo location was opened that year. In 2010, the company’s first Tupelo location on South Gloster near Crosstown, which opened in 1973 was closed. A new 50′s-style location opened at the intersection of President and South Gloster. In 2011, the old location on South Gloster in front of Kilgore’s was replaced by a new location on Eason Boulevard.
Hudson said the remaining three restaurants have all been renovated/refurbished in recant years to meet new McDonald’s standards, but eventually, they’ll give way to total redesigns.
Furniture Brands International will be in bankruptcy court in Delaware on Wednesday, as a judge will
Among them: Oaktree Capital Management‘s larger bid for the company and its assets – including Lane.
After filing for Chapter 11 bankruptcy protection on Sept. 9, Furniture Brands had said it favored a bid by Oaktree for $166 million, including $140 million in financing, plus the assumption of other liabilities. But that bid did NOT include Lane Furniture.
But after KPS Capital Partners offered a higher bid, which included Lane, and a bidding war of sorts has ensued.
In court documents, Furniture Brands says it favors Oaktree’s latest bid of $260 million. However, the unsecured creditors’ committee has balked and said it favors KPS’ even higher bid of $280 million.
And in both new bids, Lane Furniture is included in the bids, a hopeful sign for the 1,400 Lane employees in Northeast Mississippi.
Said Furniture Today ”The total of both bids includes the company’s Lane assets, which Furniture Brands originally had said would be sold separately from Thomasville, Broyhill, Drexel Heritage and other brands. Oaktree’s bid, however, still leaves room for a Lane sale prior to Oaktree’s obtaining FBI’s assets.” Read the rest of this entry »
Bloomberg Businessweek reports that Furniture Brands has received bankruptcy court approval for up to $115 million in financing to help fund operations.
The company, which on Monday filed for Chapter 11 bankruptcy protection, is looking to sell most of its assets – excluding Lane – to Oaktree Capital Management for $166 million. Furniture Brands would receive $140 million in financing as part of that package, but will have to wait until Oct 2 to hear if it gets the rest of it.
Furniture Brands said Monday it could lay off as many as 1,451 Lane employees, but said it is looking for a buyer for the company. It said there are interested buyers in the business.
According to Businessweek, another financing proposal has been offered by KPS Capital Partners, which forced Oaktree to better its terms, including reducing its fee.
And there’s this tidbit:
While Oaktree’s offer for all of the furniture lines except Lane remains at $166 million, it has agreed that if Lane sells for less than $49 million it can match that offer and pay cash to make up the difference. The $166 million offer can be submitted as a so-called credit bid allowing it to use forgiveness of debt to bid for the assets rather than cash.
KPS Capital Partners, which would buy Lane as well, said that it would be active as the bankruptcy advances. “We will be around, when we see the documents we may come forward with a better DIP, a better APA,” said Mark Thomas, a lawyer for the would-be lender and buyer, referring to debtor-in-possession financing and asset purchase agreement.
Also, Bloomberg said, the deadline for a sale to be completed as required by the bankruptcy financing was moved up about two weeks from 135 days after the bankruptcy was filed.
Furniture Brands International has notified the state that it expects to lay off up to
Those facilities would be Lane Furniture, which has manufacturing plants in Belden and Saltillo, as well as an office and distribution center in Verona and another distribution center in Wren.
Furniture Brands also filed for Chapter 11 bankruptcy protection today.
The layoffs could occur in mid-October. But a communications firm hired by Furniture Brands told Furniture Today that a final decision has not been made on the layoffs. So, let’s hope for the best.
In a memo to employees, Furniture Brands said regarding Lane, ”At this time, there are several interested parties who have indicated interest in acquiring that business. However, a sale is not guaranteed and we are exploring our options for Lane at this time.”
It also said it’s “business as usual” and the bankruptcy filing shouldn’t affect operations.
Furniture Brands hired restructuring advisers last month, shortly after posting a $41 million quarterly loss. The St. Louis-based company has not posted a profit since 2006, and sales have been cut in half since that time, to just over $1 billion last year.
It voluntarily delisted its shares from the New York Stock Exchange as well, and is trading over the counter.
The Community Development Foundation released the following:
Furniture Brands International has filed for bankruptcy and given official notice to the Mississippi Department of Employment Security Commission that over 1,400 employees are expected to be laid off from its Lane Furniture operations in Lee County.
“Today, many of our good, hard-working people have lost their jobs at no fault of their own with the layoff at Lane Furniture Industries,” stated Community Development Foundation (CDF) President and CEO, David Rumbarger. “Although we do not influence corporate decisions, we must now work hard to respond to these decisions by transitioning these displaced workers into re-employment.” Read the rest of this entry »