Daily News
From Home Furnishing Business
Stanley to Proceed with Sale; Fails to Receive Better Offer
February 7,
2018 by Larry Thomas in Business Strategy, Industry 
Stanley Furniture (NASDAQ: STLY) said it will proceed with its previously announced asset to the chairman of the Vietnam Trade Alliance after failing to receive a better offer during a two-week “go-shop period.”
In a filing with the Securities and Exchange Commission, the case goods resource said it received only one offer during the two-week window, and its board of directors determined it “was not a superior proposal or reasonably likely to lead to a superior proposal.”
As a result, Stanley said it will proceed with the previously announced $18.4 million sale to Churchill Downs LLC, an entity controlled by Walter Blocker, chairman of the Vietnam Trade Alliance.
According to the SEC filing, the company retained Stephens Inc. and Stump & Company to solicit proposals from other interested buyers. Of the 70 potential buyers contacted by the financial advisory firms, five signed confidentiality agreements to obtain more information, and one submitted a proposal.
The company has said it expects to report fourth-quarter sales of approximately $11.9 million and a net loss of about $6.7 million, but has not said when it will announce complete financial results for the quarter.
Stanley said the loss 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.