Tap to Call - (877) 250-8242

Furniture Brands International in Bankruptcy Court

October 14, 2013


Share this article



Furniture Brands International, the manufacturer of iconic brands like Thomasville, Lane, Drexel Heritage, and Broyhill, is looking for bankruptcy help, according to a recent report from USA Today.

Sources say the company is looking to sell most of its business assets to Oaktree Capital Management, an investment firm that helps rescue struggling companies by purchasing their assets at a discount rate.

The major furniture maker, which is based in St. Louis, also operates the Thomasville chain of furniture outlets, which could also be affected by the pending sale. The sale, however, will have to be approved by the bankruptcy court before it is finalized.

Sources note that Furniture Brands was decimated by the economic recession, which led many Americans to reduce their purchases of non-essential items like sofas and recliners. Unlike many of its competitors, however, the company wasn’t able to recover during the recent uptick in economic activity.

In addition to its cash woes, the stock price of Furniture Brands has been steadily falling since 2002, which portended bad financial news for the company. Unfortunately, the drop on share price did, in fact, parallel financial struggles for the company.

According to reports, Furniture Brands lost nearly $41 million during the latest fiscal quarter, prompting it to cut costs and look to sell most of its assets.

After these efforts failed to cure its financial woes, CEO Ralph Scozzafava and the board of directors decided that bankruptcy was the company’s best course of action.

Indeed, the decision may lead to a rapid recovery, as Furniture Brands already reached a tentative sale of its assets, except its line of Lane furniture, when it filed in U.S. Bankruptcy Court in Delaware, sources report.

In exchange for the assets, Oaktree will give Furniture Brands $140 in emergency financing, which would allow the company to continue its normal operations while the bankruptcy proceeds through court.

In addition, the company is currently weighing offers for its Lane brand, which is likely worth more than its other assets. Furniture Brands officials claims they have already received multiple "indications of interest" from potential buyers.

Back to Newspaper Home

Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.