Archive for the ‘Furniture’ Category
The move, announced to employees April 4, affects 63 workers.
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The settlement, which still needs court approval, has the PBGC reducing its claim against the company from $340 million to $300 million.
The company filed for Chapter 11 bankruptcy protection on Sept. 9. Most of its assets were purchased by KPS Capital Partners, which created Heritage Home Group to serve as the new parent company for Lane, Broyhill, Thomasville and other former FBI companies.
In November, the PBGC said it would pay $270 million of FBI’s pension costs.
PBGC said it would pay up to the maximum of $57,500 a year to retired Furniture Brands employees. The company has about 19,000 current and future retirees. When it filed for Chapter 11, Furniture Brands said it owed $609 million in benefits obligations, but it was only funded about 55 percent, according to PBGC.
In addition, the creditors and PBGC have agreed on a liquidation plan, and if the proceeds are more than $20 million, minus fees and other expenses, then 20 percent of the PBGC’s share will be made available to unsecured creditors.
A hearing will be held April 28 on the settlement.
Two furniture industry veterans, Lyle Harris and Larry Todd, have partnered to create Behold Home, a new motion furniture company.
The company is opening in the former TownHouse Furniture plant in Smithville, which closed late last year.
Behold will employ about 40 as it plans to begin operations in June. It expects to grow to 80 employees or more within three years.
Harris, the company’s president and CEO, said Smithville “felt like home” and said choosing the city and the facility “was an easy decision.”
Behold will initially manufacture motion furniture (reclining chairs, sofas and sectionals) but plans to expand into stationary furniture down the road, Todd said.
The company aims to find a niche in the mid-priced category, and Harris is headed to High Point, N.C., to network at its furniture market this week. He said Behold will consider all markets, which of course includes Tupelo.
Behold Home bought two former TownHouse buildings, a 76,000-square foot main plant plus a 60,000-square-foot warehouse. It also has options on land for future expansion.
Read more in tomorrow’s Daily Journal.
Heritage Home Group, the parent company of Lane, Broyhill, Thomasville,Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge brands, is closing the Pearson plant in High Point, N.C., according to the Lenoir News-Topic.
The closure, to be completed by August, will put 86 people out of work.
Heritage Home, which took over the assets of bankrupt Furniture Brands International after it was purchased by private-equity firm KPS Capital in a bankruptcy auction last fall, also announced in January the closure of two Thomasville plants in Thomasville, N.C., resulting in 84 layoffs.
It also said in January it would close Tupelo-based Lane Furniture‘s plant in Saltillo.That move resulted in the layoff of some 480 people on March 21.
According to Furniture Today, Hilco Real Estate announced a June 19 deadline for the various properties, which include former manufacturing plants, warehouse and distribution centers and office and administrative buildings in North Carolina, Tennessee and Mississippi.
The Verona facility was in recent years an office and distribution center for Lane. The 430,000-square-foot facility is located in the Tupelo Lee Industrial Park South.
The properties up for auction are part of the assets bought by KPS Capital Partners when it bought most of Furniture Brands last fall.
From the CDF:
Northeast Mississippi industries can absorb many, if not all of the 480 people laid off as a result of Lane Furniture Industry’s recent Saltillo facility closure. Among those hiring are Ashley Furniture Industries, Prime Hospitality Group, American Furniture, and H.M. Richard’s.
“The furniture industry in Northeast Mississippi is very healthy and many of these dislocated workers will have the opportunity to stay within the furniture sector,” said Community Development Foundation President David Rumbarger. “It is the work ethic of hard workers like those at Lane and others that have made the furniture business in Northeast Mississippi the largest cluster of companies.”
Many industries ask job seekers to apply on site while others are utilizing the WIN Job Center to facilitate its hiring process. The intent of the WIN Job Center is to simplify all programs under a single, comprehensive system. The Mississippi Department of Employment Services and The WIN Job Center will hold four Rapid Response sessions Wednesday, February 26, from 8:00 a.m. – 3:30 p.m. as well as a job fair from 9:00 a.m. – 2:00 p.m. All events will take place at the WIN Job Center’s Belden location and are available for former Lane employees only. Over 15 employers will be present. For more information, visit mdes.ms.gov. Read the rest of this entry »
Bauhaus, which was founded in 1989 in Saltillo, was acquired by La-Z-Boy for $60 million in 1999.
La-Z-Boy Chairman, President and CEO Kurt Darrow said the company no longer fit into its business model.
From La-Z-Boy’s perspective, with our emphasis on integrated retail, Bauhaus is not a strategic fit from a size perspective in terms of its revenue or earnings and we believe our resources will be further enhanced by narrowing our focus to our core business strategy.”
While terms were not disclosed, La-Z-Boy is selling Bauhaus to an investor group led by Bauhaus President Britt Allred.
Said Darrow: “We are pleased to have the opportunity to sell Bauhaus to an investor group that will provide continuity and seamlessness to all its customers through the transition period to new ownership. I am confident Britt and his team will ensure customers receive the same level of innovation and service from Bauhaus that they have come to expect and we wish the new ownership group and employees all the best going forward.”
The deal should be completed by the end of La-Z-Boy’s fourth quarter, which is in April.
La-Z-Boy’s remaining brands in its upholstery division includes its namesake brand and England. The company also has a case goods division that includes American Drew, Lea, Hammary and Kincaid.