ST. LOUIS, MO – Furniture Brands International (OTC: FBN I) has filed for Chapter 11 in District of Delaware court. The voluntary action includes an asset purchase agreement with Oaktree Financial Management that will provide $140 million in debtor in possession financing, allowing the company's storied brands - Thomasville, Broyhill, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge - to continue operations uninterrupted.
Not included in the agreement is Lane, which Furniture Brands says has attracted other potential acquirers. All the other assets of Furniture Brandswill be acquired by Oaktree through a Court-supervised auction process.
Other bidders for Furniture Brands could emerge, though typically in such cases the financial arrangements announced in conjunction with the Chapter 11 bankruptcy filing is adhered to. The structure of the financing provides for $50 million in liquidity.
“Our portfolio includes some of the most well respected brands in the furniture industry, and we are pleased to be partnering with Oaktree," said Ralph Scozzafava,CEO of Furniture Brands. "We are highly confident that as a result of these actions, we will protect our valuable franchise and emerge as an even stronger company.
Miller Buckfire is acting as investment banker for the company; Alvarez and Marsal North America, is acting as restructuring advisor and Paul Hastings LLP is the Furniture Brands’s legal counsel. Furniture Brands established a website with court documents and other general information about the Chapter 11 case - with each of the brands having separate legal considerations during the transition: http://dm.epiq11.com/FBN
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