Furniture Brands announced that a KPS Capital Partners affiliate is the winning bidder in the auction to acquire Furniture Brands’ assets. WTVA reported the $280 million sale was approved November 22, 2013.
Furniture Brands announced that “first day” motions filed September 9, 2013 relating to the company’s voluntary Chapter 11 restructuring process were approved by the U.S. Bankruptcy Court. Alvarez and Marsal is acting as restructuring advisor and Paul Hastings is acting as legal counsel.
The WSJ reported that Furniture Brands may be in the middle of a “bidding war” due to the emergence of private equity firm KPS Capital Partners as an interested party.
Furniture Brands filed Chapter 11 and announced it entered into an asset purchase agreement with Oaktree Capital, which will provide $140 million of DIP financing. A GE Capital led lender group is owed $91 million under a prepetition ABL revolver.
The Wall Street Journal reported that Furniture Brands International has tapped restructuring lawyers and advisers to deal with its debt load. The Journal said the company is working with Paul, Hastings, Miller Buckfire and Alvarez & Marsal.