DENVER - Sport-Haley Holdings Inc. has filed voluntary petitions for relief under Chapter 11, a few days after finalizing the sale of certain assets of its furniture subsidiary, Chromcraft Revington, to Arts & Crafts Industries.
The Feb. 27 sale of the residential furniture and casegoods supplier includes the products and designs of Chromcraft, Peters-Revington, Cochrane, Sumter Cabinet and Chromcraft Contract. Arts & Crafts, whose divisions include the Douglas and Mastercraft furniture lines, said the name of the new company will be Chromcraft Revington Douglas Ind. Inc.
Sport-Haley Holdings Inc. (Pink Sheets:SPOR) filed the voluntary petitions as part of an agreement with its secured lender. The company said this will allow it to complete the winddown of its Chromcraft Revington affiliate and does not affect Sport-Haley Inc., a provider of women's specialty sportswear.
"After extensive discussions with Chromcraft's primary lender, we have decided to take the necessary step to protect our ongoing operations, as we continue with the winddown of our Chromcraft Revington affiliate. The purpose of the filing is to gain bankruptcy court protection while we restructure our balance sheet. Throughout this process, we intend to continue business as usual," said Samuel Kidston, chairman and CEO of Sport-Haley Holdings Inc.
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