HIGH POINT, N.C. - The iconic Stanley Furniture Co. will sell nearly all of its assets to Churchill Downs, a limited liability firm linked to the Vietnam Trade Alliance. Stanley will sell the assets for $11.5 million in cash, a $4.6 million subordinated secured promissory note, and a five percent equity interest in Churchill's post-closing parent company.
Stanley will retain certain assets, including cash in an amount up to $1.5 million.
Churchill Downs is a limited liability company founded by Walter Blocker, chairman of the Vietnam Trade Alliance in Ho Chi Minh City.
“Stanley is an iconic company in the furniture industry dating to 1924 with a history of excellence," said Blocker. "We are proud to have entered into an agreement to acquire the Stanley business and look forward to building on the company’s great past following the transaction closing.”
The closing of the asset sale, which is subject to approval by Stanley's stockholders, is expected to wrap up early 2018.
Stanley says it does not intend to liquidate. Its board of directors will evaluate alternatives for use of the $11.5 million cash consideration, which are expected to include using a portion of the cash to either repurchase common stock or pay a special dividend to stockholders.
Beginning in 2017, Stanley trimmed the salaries of its top executives
- bringing company president and CEO Glenn Prillaman to $191,250 per year, down from $255,000, and financial officer Anita Wimmer to $112,500, down from $150,000. Board members earned salaries of $22,500 and the board chairman earned $26,250.
Established in 1924, Stanley Furniture Co. is a design, marketing and overseas sourcing resource in the upscale segment of the wood residential market. The company offers a diversified product line supported by an overseas sourcing model and markets its brands through the wholesale trade’s network of brick-and-mortar furniture retailers, online retailers and interior designers worldwide, as well as through direct sales to the consumer online.