STANLEYTOWN, VA – Stanley Furniture Co. says it expects to receive $2.3 million before Dec. 31 in connection with machinery and other equipment sold as it ceases manufacturing at its Stanleytown, VA plant.
That cash as well as income from a rights offering gives Stanley Furninture $19 million in cash on hand, even after it has pre-paid in full $15 million in outstanding debt under a note agreement with Prudential Insurance and other lenders.
The transactions together "allows us to eliminate our outstanding debt and the associated $1.2 million of annual interest expense,” said Micah Goldstein, COO and CFO. The move allows Stanley to avoid "a significant prepayment penalty" execute a restructuring of production "without restrictive debt covenants,” Goldstein said.
Stanley earlier said it had begun to manufacture all of its Young America furniture line domestically, and said improved it had improved operating efficiencies at its Robbinsville, NC plant. At the same time Stanley said it was moving its adult product to a completely globally sourced model, leading it to close the Stanleytown plant this month.
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