- Furniture Brands International, Inc. Files Chapter 11
- September 11, 2013 | Author: Eric J. Monzo
- Law Firm: Morris James LLP - Wilmington Office
Furniture Brands International, Inc. and affiliates, including Action Transport, Inc., Broyhill Furniture Industries, Inc., Broyhill Home Furnishings, Inc., Broyhill Retail, Inc., Broyhill Transport, Inc., Furniture Brands Holdings, Inc., Furniture Brands Operations, Inc., Furniture Brands Resource Company, Inc., HDM Furniture Industries, Inc., HDM Retail, Inc., HDM Transport, Inc., Lane Furniture Industries, Inc., Lane Home Furnishings Retail, Inc., Laneventure, Inc., Maitland-Smith Furniture Industries, Inc., Thomasville Furniture Industries, Inc., Thomasville Home Furnishings, Inc., and Thomasville Retail, Inc. (f/k/a Classic Design Furnishings, Inc.), have sought protection in Chapter 11 in Delaware.
In the first day declaration filed by Vance Johnston in support of the petition, Mr. Johnston identifies Furniture Brands as “a world leader in designing, manufacturing, sourcing, and retailing home furnishings.” The brands include well-known names of Broyhill, Lane and Thomasville among others.
Mr. Johnson cites to depressed sales as a result of the sluggish economy of the United States, competition, and tight consumer lending as some of the reasons for the filing. In addition, Mr. Johnson notes that the Debtors have been experiencing strains on its liquidity in addition to mounting pension liabilities.
Mr. Johnson notes that the Debtors propose a sale of assets as part of the bankruptcy. As part of that process, Mr. Johnson notes that the Debtors have secured a $140 million DIP facility commitment from Oaktree Capital Management, L.P and certain of its affiliates, and that Oaktree has agreed to act as the stalking horse for the sale of certain of the Debtors’ assets.
The case was filed on September 9, 2013 and is being administered as Case No. 13-12329. The judge assigned to the case is The Honorable Christopher S. Sontchi.