Heritage Home Group and its affiliates have identified buyers for the purchase of the it’s portfolio of iconic furniture brands as the company entered Chapter 11.

RHF Investments (RHF), owner of furniture brands such as Century, Hancock & Moore and Highland House, signed an agreement to acquire HHG’s Luxury business, which includes the Hickory Chair, Maitland-Smith and Pearson brands. This transaction provides an opportunity for HHG to join a well-established and successful strategic player in the high-end furniture industry and will enable continued growth in its core interior design and retail selling channels.

HHG has also has signed a letter of intent and is in final negotiations with a buyer for the acquisition of both its Thomasville and Broyhill business units.

To ensure that HHG maximizes the value of its assets for the benefit of stakeholders, HHG’s parent company, HH Global II BV, and its related U.S. affiliates have filed petitions with the U.S. Bankruptcy Court for the District of Delaware in Wilmington to commence a restructuring process that will allow the company to complete the sale of its businesses under Section 363 of the Bankruptcy Code.

Through an auction expected to be held within the next 60 days, HHG intends to secure the next chapter of its brands’ long histories by identifying owners that will demonstrate the highest-and-best value for the assets along with the ability to invest in and support their growth. The company will shortly file a bid procedures motion to establish a process for soliciting competing bids, subject to court approval.

HHG also obtained a commitment from PNC to provide a $98 million debtor-in-possession financing facility, which will provide up to $18 million in additional liquidity to support the company’s operations during the restructuring and sales process. No material change in HHG’s operations is anticipated during the commencement of the sale process.

Employees will be paid as usual, customers should see no interruption and suppliers will be paid for goods and services provided after the filing date. This financing will allow the company to continue to deliver best-in-class furniture and accessories to its customers.

Robert Albergotti, who currently serves as HHG’s interim chief financial officer and is a managing director at AlixPartners, has been named chief restructuring officer to support the company through this process.

Albergotti remarked, “With the creation of our more focused Broyhill, Thomasville and Luxury business units in late 2017, our Lane and Lane Venture businesses were designated for divestiture, and we were fortunate to find excellent trade buyers for each in United Furniture and Bassett Furniture, respectively. Those businesses are thriving today under their new owners, and the proceeds of the sales were used to repay considerable debt obligations of the company and provide meaningful liquidity to support our operations and the current sales process for the remaining business units.”

HHG is being advised by AP Services, the law firm of Young Conaway Stargatt & Taylor and Houlihan Lokey Capital, as its investment banker.

High Point, NC-based Heritage Home Group designs, manufactures, sources and sells home furnishings.