ST. LOUIS, Nov. 22, 2013 (GLOBE NEWSWIRE) -- Furniture Brands International ("Furniture Brands" or the "Company") today announced that the United States Bankruptcy Court for the District of Delaware has declared an affiliate of KPS Capital Partners, LP ("KPS") as the winning bidder in the auction to acquire substantially all of the Company's assets. Furniture Brands and KPS expect to complete the transaction in the next several business days.
Ralph Scozzafava, Chairman of the Board and CEO of Furniture Brands, said: "We congratulate KPS and firmly believe that this transaction is the best outcome for all of our stakeholders. KPS has a long track record of providing companies that have undergone restructurings with the operational expertise and financial strength they need to preserve their market leadership as strong standalone businesses positioned for future growth. We are quite pleased that KPS has extended an offer of employment to substantially all of our employees who will help build a successful future for Furniture Brands."
On October 3, 2013, KPS was named as the "stalking horse" bidder in the Court-supervised sales process under Section 363 of the United States Bankruptcy Code. KPS also provided Furniture Brands with a $190 million Debtor-in-Possession financing facility to support its operations. In order to maximize the value of the Company's assets, the agreement between Furniture Brands and KPS allowed for additional qualified prospective bidders to enter an auction process, in accordance with procedures established by the Court. The Court set November 20, 2013 as the deadline for submitting bids and November 21, 2013 as the date of the auction.
Miller Buckfire and Company, LLC is acting as investment banker for the Company; Alvarez and Marsal North America, LLC is acting as restructuring advisor; and Paul Hastings LLP is the Company's legal counsel. Proskauer Rose LLP is acting as legal counsel to KPS with respect to the transaction.
Furniture Brands and certain of its affiliates commenced cases to reorganize under Chapter 11 of the U.S. Bankruptcy Code on September 9, 2013. The Chapter 11 cases are being jointly administered under case number 13-12329. Additional information about the restructuring is available at the Company's website www.furniturebrands.com. For access to Court documents and other general information about the Chapter 11 cases, please visit: http://dm.epiq11.com/FBN
About Furniture Brands
Furniture Brands International (OTC:FBNIQ) is a world leader in designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multiline/independent retailers and mass merchant stores. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. To learn more about the company, visit www.furniturebrands.com
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with over $6.0 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries. The KPS investment strategy is based primarily upon partnering with top management teams and improving the operations of businesses. Thereafter, upon achieving stability and profitability, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of over $7.6 billion, operate 87 manufacturing facilities in 25 countries, and employ approximately 31,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
CONTACT: Investor contact:
VP, Controller, Treasurer and Investor Relations
KPS Capital Partners contact:
Kekst and Company