JAMESTOWN, NY — RTA home and office furniture manufacturer Bush Industries Inc. announced Dec. 9 it has completed a sale-leaseback transaction involving the sale of one of its buildings located in Erie, PA to LORD Corp.
Bush CEO Jim Sherbert said the sale of the building will allow the case goods manufacturer to reinvest capital into its business units and product development, and also expand sales and marketing opportunties.
Bush Industries will lease approximately 500,000 square feet of the Erie facility, which currently houses distribution operations, including an automated storage and retrieval system. The company said employees, and service, will not be impacted. LORD is a developer of motion, vibration and noise management devices, as well as a supplier of adhesive products.
"As we continue to move forward with the rollout of our national distribution and logistics strategy, the opening of facilities such as our Reno, NV, center have reduced the requirements of our space in Erie," Sherbert said in a statement. "Based on this, we made a strategic decision to sell the property and lease back the space we currently use, so that we can reinvest the proceeds in our growth initiatives for Bush Furniture and BBF."
It was earlier this year that the company separated into its two distinct operating divisions: Bush Furniture, for retail and online sales with a focus on entertainment furniture and items for the home office, and BBF, which manufacturers furnishings for the commercial market segments. In addition to its two North American divisions, the company operates its Rohr division in Germany and has operations in China.
Last month, Bush Furniture made news with the expansion of its my|space line to include coordinated small space solutions for the home. The company also announced recently that the kathy ireland Office by Bush Furniture Collections is now available online and in retail stores.
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