The transaction is expected to close in the next several days, according to a release from Furniture Brands late Friday.

"We congratulate KPS and firmly believe that this transaction is the best outcome for all of our stakeholders," said Ralph Scozzafava, chairman of the board and CEO. "KPS has a long track record of providing companies that have undergone restructurings with the operational expertise and financial strength they need to preserve their market leadership as strong standalone businesses positioned for future growth. We are quite pleased that KPS has extended an offer of employment to substantially all of our employees who will help build a successful future for Furniture Brands."

KPS was named the stalking horse bidder in October. Furniture Brands filed Chapter 11 in September with the U.S. Bankruptcy Court for the District of Delaware.

KPS provided Furniture Brands with a $190 million debtor-in-possession financing facility to help support the organization's ongoing operation.

Court documents on the case are available online.