NEW YORK - Furniture Brands International has been reformed as Heritage Home Group by its new owner KPS Capital Partners LP.
KPS, a private equity investor with more than $6 billion of assets under management, purchased substantially all of the assets of Furniture Brands on Friday. The transaction was approved by the U.S. Bankruptcy Court for the District of Delaware.
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KPS said, "Heritage Home Group will operate as an independent company with the long-term support of KPS." HHG's furniiture divisions include Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.
In addition the name change, KPS announced that Ira Glazer was appointed president and CEO of Heritage Home Group. He replaces Ralph Scozzafava. KPS said Glazer has three decades of turnaround experience.
"Free of Furniture Brands’ burdens and liabilities, and with a rock-solid balance sheet and many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader," Glazer said.
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."
Furniture Brands International entered into an asset purchase agreement with KPS Capital Partners LP on Oct. 3 to acquire substantially all of FBI's assets for $280 million. One month earlier, Furniture Brands had filed for Chapter 11 bankruptcy protection.
In August, Furniture Brands moved its common stock from the New York Stock Exchange (NYSE) to the over-counter-market (OTCBQ) due to its market capitalization below the NYSE's listing requirements.