Stanley’s board has been trying for nearly two years to revive flagging interest in the company’s performance and share price. The share price closed Monday up 3 cents to 92 cents. The announcement was made after the stock market closed.

Stanley announced in June 2016 it had hired a financial adviser, Stephens Inc., to pursue financial options that included “consideration of a possible sale, merger or other business combination.”

Stanley will retain certain assets, including up to $1.5 million in cash, net operating loss carryforwards, and any remaining payments under the Continued Dumping and Subsidy Offset Act that affects certain Chinese wooden furniture importers.

Stanley’s board of directors said it could use some of the cash to “either repurchase company common stock or pay a special dividend to stockholders.” It already has paid at least three special dividends to shareholders in the past two years.

Also under consideration is buying “non-furniture related assets that will allow the company to potentially derive a benefit from its substantial net operating loss carryforwards.”

The company expects to have professional fees and change-in-control payments to executives in the $2.5 million range. That would include payments to Glenn Prillaman, its president and chief executive, and Anita Wimmer, financial and accounting officer, as well as liabilities related to the payment of dividends on shares of restricted stock awarded under the company’s incentive compensation plans.

The acquirer was formed in Delaware by Walter Blocker, chairman of Vietnam Trade Alliance in Ho Chi Minh City.

Blocker said in a statement that “Stanley is an iconic company in the furniture industry dating to 1924 with a history of excellence. We look forward to building on the company’s great past following the transaction closing.”

Stanley said Steven Hale II has been elected as board chairman, replacing John Lapey.

In May 2010, Stanley shifted production of adult furniture to Southeast Asia vendors, mostly in Indonesia and Vietnam, icutting 530 jobs in Virginia. It closed a plant in Lexington in 2008, affecting 350 jobs.

In April 2014, Stanley announced it was ending domestic production of its Young America line, a stunning decision given the company had marketed the pieces as a major difference-maker as a made-in-USA product. That plant closing in Robbinsville affected 400 employees.

It has kept assembly, finishing and warehousing operations in its former hometown of Stanleytown, Va., and in Martinsville, Va.

The company reported Nov. 13 a lower third-quarter loss, at $305,000, than $2.1 million a year ago. Sales fell 5.5 percent to $10.4 million. The company previously reported having production issues with its global suppliers, but said those problems were resolved in the third quarter.

Stanley introduced at the fall High Point market an unbranded collection of higher-end lifestyle furniture.

(Source:journalnow.com)