Archive for the ‘Furniture’ Category
Former Furniture Brands International president and CEO Ralph Scozzafava and the company’s former CFO Vance Johnston are asking the U.S. Bankruptcy Court of the District of Delaware have asked to have access to a $15 million insurance policy that would help pay for potential lawsuits.
Scozzafava and Johnston, who left the company on Nov. 25 after KPS Capital Partners completed its $280 million purchase of the company, had bought Executive Edge Broad Form Management Liability Insurance Policy issued by American International Group, Inc., National Union Fire Insurance Company of Pittsburgh, Pa. The policy is affective April 30 of this year to April 30, 2014.
Both men are facing lawsuits that claim they misled investors regarding the health of the former Furniture Brands, which filed for Chapter 11 bankruptcy protection on Sept. 9.
KPS bought the majority of the assets of Furniture Brands and renamed them under a new umbrella company, Heritage Home Group.
Meanwhile, what remains of the old Furniture Brands has been renamed Furniture Brands Wind Down.
The insurance policy provides up to $15 million of insurance coverage, including coverage for legal fees and related expenses that might be incurred defending the claims.
Attorneys for the former executives, according to the Winston-Salem Journal said they “bargained for and relied on the protection afforded to them by the policy, and it would be unjust to strip them of that benefit when they need it most.”
“Further, if stripped of that benefit, the insureds may suffer substantial and irreparable harm.”
Objections are due to the court by Dec. 20. A hearing will be held Jan. 7.
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.
Prime Designs, which now employs about 120, is investing $500,000 and adding up to 120 jobs in the next year to build the Duck Commader-licensed products.
The furniture maker is the first to get a licensing agreement from Duck Commander, the company behind the popular “Duck Dynasty” show featured on A&E.
Prime Designs co-founder Tim Richey said the sales potential of the Duck Commander-licenced line is unlimited.
“It could be $60 million to $100 million – we’re just not sure at this point,” he said.
At the end of the two-year agreement, the two companies will review the results.
“If they’re happy with the results, we can continue the license.” Richey said. “We hope we make them very happy.”
A big selling point was that Prime Designs opted to embroider the logo onto the furniture, rather than have it as a sewn-on decal. In addition, the logo is prominently displayed.
While the camo pattern is an obvious link, other patterns are available, too, said PD national sales manager Jerry Marlin.
“We’ve have solids, cotton, leather and even wood trim,” he said.
Prime Designs was apparently the first furniture manufacturer to approach Phil Robertson and the Duck Commander crew about licensing the company’s name on products, and the first to get a license.
“‘Duck Dynasty’ is the name of the A&E show, but Duck Commander is the name, the company behind why the show exists,” Marlin said. “We were fortunate to be the first to ask. There have been others after us. And there’s Duck Dynasty-licensed products, but we don’t have anything to do with that. We’re strictly Duck Commander.”
Several top 100 national furniture retailers have already placed orders with Prime Designs, and the company is negotiating with Walmart, Sam’s and other large chains.
KPS Capital Partners, which received bankruptcy court approval to purchase Furniture Brands International for $280 million on Friday, has moved quickly to change the company’s image and leadership.
Furniture Brands is now called Heritage Home Group.
Former CEO Ralph Scozzafava has resigned effective today, replaced by Ira Glazer. Former CFO Vance Johnston was replaced by Jeff Zappone, another turnaround expert and managing director of Conway MacKenzie advisory firm.
Lane Furniture Industries president Dan Masters also is out, but a replacement has not been named. Jay Reardon, formerly president of Hickory Chair, another division of Furniture Brands, also was let go.
More from the KPS:
Heritage Home Group will operate as an independent company with the long-term support of KPS, a private equity investor with more than $6.0 billion of assets under management and a long track record of successfully transforming businesses and creating profitable, growing companies. Heritage Home Group owns an iconic collection of the furniture and design industry’s leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.
Heritage Home Group launches as a well-capitalized company, with no legacy obligations and access to the financial resources necessary to execute its ambitious business improvement and growth plans.
KPS also announced that Ira Glazer has been named President and Chief Executive Officer of Heritage Home Group. Mr. Glazer is an executive with three decades of successful turnaround experience and has previously partnered with KPS on a very successful platform.
Raquel Vargas Palmer, a Partner of 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.
“KPS is delighted that Ira Glazer will serve as President and CEO of Heritage Home Group. Ira is an outstanding business leader with a demonstrated track record of transforming and growing companies. We have worked successfully with Ira in the past and look forward to collaborating again to build the value of Heritage Home Group.
“We are grateful to all of Furniture Brands’ stakeholders for their assistance and cooperation through the transaction process and the formation of Heritage Home Group,” Ms. Palmer concluded.
Mr. Glazer said, “I am honored to lead Heritage Home Group. Free of Furniture Brands’ burdens and liabilities, and with a rock-solid balance sheetand many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader. I am also pleased to partner and collaborate again with KPS, a firm that has distinguished itself as a global leader in turnaround investing and is ideally suited for this exciting venture.
“I would like to commend Ralph Scozzafava, who informed us this morning that he resigned as CEO of Furniture Brands, for his efforts over the past several years. Ralph worked hard to ensure that Furniture Brands’ assets would be well-positioned for growth and we thank him for his contributions,” Mr. Glazer concluded.
Cleveland, Tenn.-based Jackson Furniture, also known by its Catnapper brand, has selected a second site in Northeast Mississippi for its upholstered furniture manufacturing operations.
It opened a factory in Mantachie several weeks ago in the former PeopLoungers facility, which most recently was occupied by Townhouse. That facility is 183,000 square feet, sitting on 33 acres.
The motion and stationary furniture maker said it is investing $2 million and creating 250 jobs in three years at the two locations.
From Furniture Brands:
Furniture Brands International today announced that the United States Bankruptcy Court for the District of Delaware has declared an affiliate of KPS Capital Partners as the winning bidder in the auction to acquire substantially all of the Company’s assets. Furniture Brands and KPS expect to complete the transaction in the next several business days.
Ralph Scozzafava, Chairman of the Board and CEO of Furniture Brands, said: “We congratulate KPS and firmly believe that this transaction is the best outcome for all of our stakeholders. KPS has a long track record of providing companies that have undergone restructurings with the operational expertise and financial strength they need to preserve their market leadership as strong standalone businesses positioned for future growth. We are quite pleased that KPS has extended an offer of employment to substantially all of our employees who will help build a successful future for Furniture Brands.” Read the rest of this entry »