From Home Furnishing Business
Stanley Revises Sale Agreement; Seeks Better Offers
Stanley Furniture (NASDAQ: STLY) said it has revised a previously announced sale agreement by increasing the purchase price for the company to $18.4 million and allowing the company to seek better offers until Feb. 5.
In November, the company agreed to sell substantially all of its assets for $16.1 million to an entity controlled by Walter Blocker, chairman of the Vietnam Trade Alliance, but the new agreement increases the total purchase price while lowering the cash component of the deal to $7 million from $11.5 million.
In addition, the termination fee due to Stanley has been lowered to $375,000 from $750,000 if the deal with Blocker is not completed.
If Stanley’s board of directors receives a new proposal that could result in a better purchase price, the board would have an additional 16 days to negotiate with the potential buyer, according to the revised agreement.
The company said it expects to report fourth-quarter sales of approximately $11.9 million and a net loss of about $6.7 million.
The loss, which includes $433,000 in anti-dumping duties, is due largely to a write-off of $3.3 million for obsolete and slow-moving inventory and charges of $1.7 million related to former CEO Glenn Prillaman’s severance package and the resignations of two members of the board of directors.
In addition, Stanley said it incurred about $800,000 in expenses related to the proposed asset sale.
The company did not say when it would release complete financial results for the quarter.