Private Equity Firm Gets Stake in Standard Furniture

September 6, 2017  by Larry Thomas in Economic News, Industry   

The firm didn’t disclose the size of its ownership stake or the amount of its investment, but said Standard Chairman William “Billy” Hodgson “will retain significant ownership” in the recapitalized company.

“We looked long and hard to find a partner that fits our culture and legacy,” Hodgson said. “We believe Aterian will be a great partner in supporting us in our next stage of growth while Standard maintains its commitment to provide our customers with market leading customer service, quality and design."

Founded in 1946 and based in Bay Minette, Ala., Standard is perhaps best known as a resource for bedroom, dining room and occasional furniture. Upholstery was added to the product mix in 2016, a move that coincided with the launch of the popular Magnolia Home line with HGTV stars Chip and Joanna Gaines.

The company said its design, manufacturing and sourcing capabilities enable it to deliver a compelling and diverse value proposition to its retail partners and end-consumers, which is validated by its partnership with approximately 2,000 retailers and roughly 7,000 storefronts across the United States.

“We are excited to partner with the Aterian team and collaborate on strategic initiatives that will allow Standard to continue to provide high quality products to our existing customers, as well as pursue additional business initiatives and service offerings,” added Standard CEO Todd Evans.

Michael Fieldstone, Principal at Aterian, stated, “We are thrilled to recapitalize Standard Furniture with Billy and his family. We were attracted to Standard’s 70-year history of being a stalwart provider of value-oriented furniture to its long-standing customer base. We look forward to supporting Standard’s talented and cohesive management team led by Billy, Todd and Tim Ussery, and investing in the company’s infrastructure and new product lines, including the newly developed and highly successful Magnolia line.”