Heritage Home Group has agreed to sell Broyhill and Thomasville & Co. for $22 million to Authentic Brands Group and SB360 Capital Partners LLC in the latest milestone in a recent journey for the company, which first announced bankruptcy at the end of July. The sale includes both brands and their related assets, and should be finalized in a court-supervised auction within the next 60 days.
The $22 million is a baseline bid, and it is expected to rise at the auction. HHG is also still in talks with other companies that are interested in the brands as well, Furniture Today reported.
Despite identifying what the company is referring to as a “stalking horse bidder,” which means the first to secure the bid, HHG is keeping its WARN (Worker Adjustment and Retraining Notification) Act notice in effect at its upholstery and case goods plants in Lenoir, North Carolina. The act requires companies with over 100 employees to give at least 60 days’ notice before a mass layoff or closing. Layoffs at HHG’s plants could affect over 700 workers, according to Furniture Today. The company also says it is still too soon to tell who the actual buyer will be.
“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,” chief restructuring officer Robert Albergotti told the magazine. “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.”
HHG’s latest bid is separate from the earlier agreement with Rock House Farm (also known as RHF Investments, the parent company of Century Furniture and Highland House, among others). RHF had agreed to purchase all the assets from HHG’s luxury brands, including Hickory Chair, Pearson and Maitland-Smith.