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.