Furniture Brands Chapter 11 Hits U.S. Suppliers, and Tops Reports

By Bill Esler

September 19, 2013 | 12:46 pm CDT

Furniture Brands Chapter 11 Hits Snag over $6 Million Fee

Furniture Brands bankruptcy, which lists hundreds of suppliers as creditors, finds a company that will make good use of the reorganization imposed on it by creditors and the courts. The parent of Thomasville, Broyhill, Lane, et.al. may never have completed its integration of these powerful brands. Now they can finish the task.

While commentators critiqued the $5 million that Furniture Brands wants to set aside for retention bonuses and performance rewards, these are standard operating procedures in such Chapter 11 undertakings, and are magnified only because of the large size of the residential furniture manufacturer.

The furniture maker's travails have affected many subcontractors and suppliers (the 1700-page creditors list is embedded in his comments), notes one North Carolina wood products firm:

"There are several U.S. [wood industry] companies in the [1700-page] debtor list although much farther down the line in debt size than the Chinese companies listed or the freight haulers. My company (in N.C. for over 50 years) stands to lose a pretty good sum. Although we don't like it we can weather the loss.

"The one's who can't are the American workers who have been tossed aside over the past 20 years and now most recently at Lane. Until Americans begin to demand U.S. made products and reject imported crap this cycle will continure to repeat itself. All the corporate monster recognizes is $. Stop buying their imported stuff and move our money to those who manufacture here and the trend may begin to reverse itself. Believe it or not, there are still a lot of companies building furniture in the US at affordable prices."

Here are the week's top reports:

Key Breaking Stories
Chinese Plywood Makers Guilty of Dumping says U.S. Masco Cabinetry to Close Ohio Merillat Plant IKEA U.S. Pursues Energy Independence Smart Cabinetry To Hire 90 New Employees

Furniture Brands Bankruptcy Draws Bidders, Creditors by Bill Esler Posted: 09/12/2013 10:18AM Furniture Brands bankruptcy, with valuable assets like Thomasville, Broyhill, Henroden and Lane on the docket, drew a competing bid. KPS Capital Partners says it will offer $166 million. Furniture Brands also seeks $5 Million for Exec bonuses.
What Makes a Good Crotch Wood? By Scott Wunder Posted: 08/18/2013 1:24PM Every log has wood in it somewhere that is at least a little irregular. You just need to know where to look. One place that holds a lot of promise is the crotch area.
RSI Professional Cabinets Names Nick Magee GM Posted by Bill Esler \| Posted: 09/13/2013 8:53AM RSI Professional Cabinet Solutions (RSI PCS), expanding its European-inspired frameless cabinetry operations, named Nick Magee to General Manager Northern California.
Veneered Maple Desk - Version 2.0 By Jared Patchin Posted: 09/03/2013 9:17AM Since making the first veneered maple desk in 2009, J. Alexander Fine Woodworking's Jared Patchin has received several requests for the piece. Here Patchin details the making and updating of the veneered maple desk.
Jersey Boardwalk Fire Destroys Pier By Michaelle Bradford \| Posted: September 13, 2013 - 10:48 AM New Jersey boardwalks in two seaside towns were destroyed in a devastating fire. The wood structures were rebuilt after being damaged by Hurricane Sandy.
ComDust Prevention: Woodshops Take Note By Jamison Scott \| Posted: September 5, 2013 - 5:14 PM OSHA is visiting wood operations of all sizes to check for combustible dust related issues. Here is what you need to know.
Amerock Hardware Sold by Newell Rubbermaid; Closets Retained By Bill Esler \| September 14, 2013 - 3:05 PM Newell Rubbermaid Inc. sold its hardware for cabinetry and casegoods businesses - including Amerock, Ashland, Bulldog and Shur-Line brands - to Nova Capital. Retaining Irwin, Lenox saw blades, Rubbermaid Closets.
Leedo Cabinetry Launches Real-time Project Field Status Updates By Bill Esler \| Posted: September 15, 2013 - 3:53 PM Leedo Cabinetry launched a program to provide real-time field updates. Written by its IT department, it allows Leedo cabinet installation services teams to get instant status updates on customer projects across the country, says CIO Darryl Preen.
WOOD 100 2013: Vaughan-Bassett Markets Furniture Made in USA By Karen Koenig \| Posted: September 4, 2013 - 11:50 AM Placards and media help promote Vaughan-Bassett's wood products manufactured in the USA.Wood is sourced as locally as possible.
WOOD 100 Strategies for Success 2013: 93% Expect Growth By Karen Koenig \| Posted: September 8, 2013 - 9:35 PM More than half (51.6%) of North American wood products firms saw sales resurge last year, and 92.2% expect growth for this year, according to data analysis from the WOOD 100 for 2013.
Armstrong and Mohawk Hike Flooring Prices By Andy Johnson \| Posted: September 12, 2013 - 2:57 PM Hardwood flooring demand and pricing has surged higher in 2013 partly due to price increases from Armstrong Flooring Products and Mohawk Industries.
California Closets CEO Bill Barton Talks Marketing Posted by Bill Esler \| Posted: September 1, 2013 - 9:53 AM California Closets CEO Bill Barton talks about the impact marketing agency iSearchMedia has had on the home storage franchise business lead generation.

Last week's most-read wood industry stories>>

ï»¿

Have something to say? Share your thoughts with us in the comments below.

Furniture Brands Bankruptcy Draws Bidders, Creditors by Bill Esler Posted: 09/12/2013 10:18AM Furniture Brands bankruptcy, with valuable assets like Thomasville, Broyhill, Henroden and Lane on the docket, drew a competing bid. KPS Capital Partners says it will offer $166 million. Furniture Brands also seeks $5 Million for Exec bonuses.
What Makes a Good Crotch Wood? By Scott Wunder Posted: 08/18/2013 1:24PM Every log has wood in it somewhere that is at least a little irregular. You just need to know where to look. One place that holds a lot of promise is the crotch area.
RSI Professional Cabinets Names Nick Magee GM Posted by Bill Esler \| Posted: 09/13/2013 8:53AM RSI Professional Cabinet Solutions (RSI PCS), expanding its European-inspired frameless cabinetry operations, named Nick Magee to General Manager Northern California.
Veneered Maple Desk - Version 2.0 By Jared Patchin Posted: 09/03/2013 9:17AM Since making the first veneered maple desk in 2009, J. Alexander Fine Woodworking's Jared Patchin has received several requests for the piece. Here Patchin details the making and updating of the veneered maple desk.
Jersey Boardwalk Fire Destroys Pier By Michaelle Bradford \| Posted: September 13, 2013 - 10:48 AM New Jersey boardwalks in two seaside towns were destroyed in a devastating fire. The wood structures were rebuilt after being damaged by Hurricane Sandy.
ComDust Prevention: Woodshops Take Note By Jamison Scott \| Posted: September 5, 2013 - 5:14 PM OSHA is visiting wood operations of all sizes to check for combustible dust related issues. Here is what you need to know.
Amerock Hardware Sold by Newell Rubbermaid; Closets Retained By Bill Esler \| September 14, 2013 - 3:05 PM Newell Rubbermaid Inc. sold its hardware for cabinetry and casegoods businesses - including Amerock, Ashland, Bulldog and Shur-Line brands - to Nova Capital. Retaining Irwin, Lenox saw blades, Rubbermaid Closets.
Leedo Cabinetry Launches Real-time Project Field Status Updates By Bill Esler \| Posted: September 15, 2013 - 3:53 PM Leedo Cabinetry launched a program to provide real-time field updates. Written by its IT department, it allows Leedo cabinet installation services teams to get instant status updates on customer projects across the country, says CIO Darryl Preen.
WOOD 100 2013: Vaughan-Bassett Markets Furniture Made in USA By Karen Koenig \| Posted: September 4, 2013 - 11:50 AM Placards and media help promote Vaughan-Bassett's wood products manufactured in the USA.Wood is sourced as locally as possible.
WOOD 100 Strategies for Success 2013: 93% Expect Growth By Karen Koenig \| Posted: September 8, 2013 - 9:35 PM More than half (51.6%) of North American wood products firms saw sales resurge last year, and 92.2% expect growth for this year, according to data analysis from the WOOD 100 for 2013.
Armstrong and Mohawk Hike Flooring Prices By Andy Johnson \| Posted: September 12, 2013 - 2:57 PM Hardwood flooring demand and pricing has surged higher in 2013 partly due to price increases from Armstrong Flooring Products and Mohawk Industries.
California Closets CEO Bill Barton Talks Marketing Posted by Bill Esler \| Posted: September 1, 2013 - 9:53 AM California Closets CEO Bill Barton talks about the impact marketing agency iSearchMedia has had on the home storage franchise business lead generation.

RECENT ARTICLES

AHFA schedules inaugural Furniture Safety Week in October

It's Closets Week in Schaumburg

Industry leader James Scarlett dies in plane crash

BlueLinx announces executive leadership promotions

B.C. invests $9.5 million in truss company, and $70.3 million overall to support forest sector

Jeld-Wen to shutter two manufacturing facilities

RELATED ARTICLES

RECENT ARTICLES