HIGH POINT – Heritage Home Group said it has signed an agreement to sell Broyhill and Thomasville & Co. for $22 million to the newly formed Authentic Brands Group and SB360 Capital Partners LLC.

 

The entity has been identified as the stalking horse bidder for the brands, including Drexel and Henredon, which are both part of Thomasville & Co.

 

This is the latest development in the company’s sale of various assets as part of its restructuring and Chapter 11 bankruptcy proceeding, announced July 30. The purchase price includes the brands and related intellectual property assets, the company said. The deal will be part of a court supervised auction expected to take place in the next 60 days.

 

The baseline bid is subject to higher offers in the upcoming auction, and HHG said it is continuing discussions with other interested parties. These include strategic buyers for both its Broyhill and Thomasville & Co. business units. The winning bidders will be announced after the auction is completed.

 

While a stalking horse bidder has been revealed, the company said that a WARN Act notice that notifies employees of potential layoffs at the Lenoir, N.C. upholstery and case goods plants remains in effect. A layoff at these facilities could impact more than 700 workers, according to various news sources.

 

"Today’s bid is a baseline bid, and is subject to higher and better offers in what we anticipate will be a competitive auction," said spokesman John Peter Kaytrosh on behalf of Heritage Home Group. "Accordingly, it is therefore too early to say who the ultimate buyer of these brands will be and what they will choose to do with these facilities."

 

Related story: Unable to reach deal for Broyhill, Thomasville, Heritage Home issues notice to employees

 

HHG said that Authentic Brands Group is a brand development, marketing and entertainment company which owns a global portfolio of entertainment and lifestyle brands. The company said it is unrelated to the previously announced agreement for RHF Investments to acquire the luxury brands including Hickory Chair, Pearson and Maitland-Smith.

 

“This agreement with the Stalking Horse Bidder for the Broyhill, Thomasville, Drexel and Henredon brands is a clear sign of the value of these beloved names in the furniture industry,” said Chief Restructuring Officer Robert Albergotti. “We have received further interest in the brands and these business units, and look forward to continuing these discussions in the period leading up to the auction.

 

"HHG continues to focus on servicing our customers throughout this process, and we remain grateful for the support of our employees, customers and all other stakeholders.”

 

 

 

 

 

(Source: JJgle.com)