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From Home Furnishing Business

KPS Names Heritage Home Group; Scozzafava Out

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KPS Capital Partners, the new owner of the Furniture Brands International brands, has renamed the company  Heritage Home Group.

 

Heritage Home Group acquired the assets of Furniture Brands "free and clear of substantially all liens, claims, encumbrances and interests" through the bankruptcy auction. The U.S. Bankruptcy Court for the District of Delaware approved the transaction Friday.

Also, Ralph Scozzafava, former CEO of Furniture Brands, has resigned his position. Heritage Home has named Ira Glazer president and CEO of the newly formed company. Glazer is an executive with three decades of successful turnaround experience and has previously partnered with KPS on a very successful platform, according to KPS.

“This is the beginning of a new era for Heritage Home Group and its brands," said Raquel Vargas Palmer, a partner of KPS. "The company has a new owner, a new CEO, a new board of directors and a new strategic direction. Heritage Home Group launches with truly iconic brands, a solid financial structure and access to KPS’ financial resources and expertise.  We strongly believe in the fundamental value of this business and the significant growth potential that can be unlocked through focused investment in our brands. We are proud to welcome the many Furniture Brands associates who are joining Heritage Home Group, and we look forward to working together to build a thriving and profitable company."

Heritage Home Group will operate as an independent company with the long-term support of KPS, a private equity investor with more than $6 billion of assets under management and a track record of successfully transforming businesses and creating profitable, growing companies.   

Heritage Home Group launches as a well-capitalized company, with no legacy obligations and access to the financial resources necessary to execute its ambitious business improvement and growth plans.

 “KPS is delighted that Ira Glazer will serve as president and CEO of Heritage Home Group," Palmer said. "Ira is an outstanding business leader with a demonstrated track record of transforming and growing companies.  We have worked successfully with Ira in the past and look forward to collaborating again to build the value of Heritage Home Group."

“I am honored to lead Heritage Home Group," Glazer said. "Free of Furniture Brands’ burdens and liabilities, and with a rock-solid balance sheet and many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader. I am also pleased to partner and collaborate again with KPS, a firm that has distinguished itself as a global leader in turnaround investing and is ideally suited for this exciting venture.

“I would like to commend Ralph Scozzafava, who informed us this morning that he resigned as CEO of Furniture Brands, for his efforts over the past several years," he said. "Ralph worked hard to ensure that Furniture Brands’ assets would be well-positioned for growth and we thank him for his contributions."

GE Capital, Corporate Finance and PNC Bank, N.A. provided financing for the transaction. 








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Robert Mark    6 years ago

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1520 views of this and not one additional comment? Very strange. And Sheila, you did not bother to comment either. I would suggest that this response relfects why our industry has fallen to such an unimaginable low.

When so many livelihoods and careers have been destroyed, wouldn't you think someone else might have something of consequence to say to shed light on the atrocity?
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Robert Mark    6 years ago

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The first bit of insanity is that they renamed FBI The Heritage Home Group. Isn't this a bit of deja vu with the corpse of Lineage rotting in the ground and Heritage as one of their iconic companies? Very creative move. The name is so overused it provides no distinction.

The second piece of insanity is to think that their stable of companies is iconic or consequential after decades of destruction. Henredon and Drexel Heritage are overpriced horribly designed lines displaying no value. The other companies that are left are mere shadows of what they originally were when owned by their founders. Masco bought Henredon for more money than KPS paid for FBI's full stable of so called icons> $298,700,000. in 1986!!!!!!!!!!!!!!!!! What does that tell you?

The third piece of insanity is that Ira Glazer, the turn around genius, thanked Ralph Scozzafava for his contribution to FBI. Glazer must be the only one in the entire industry who could be so clueless to make such a public statement. Scozzafava made a fortune for himself and Interco by destroying FBI year after year. Of course Interco has been buying and destroying furniture factories since the 1970's. The interesting thing is that they must have a secret as to how they can make fortunes destroying companies rather than running them profitably. I hope some reader of this comment can enlighten us regarding the financial machinations.

Perhaps this publication might do some investigative journalism and bring all the facts to the light of day.
The new owners are shockingly negligent by not giving the industry the true story. Who needs industry publications that do not give the real news. There has not been one article in this publication or FT which even attempted to shed light on this atrocity which cost so many people their livelihoods, closed so many US factories that never needed to be closed and destroyed quality and good design across so many companies.

Scozzafava and FBI were simply tools of the 1% to make huge profits for themselves. I wonder if anyone left in this industry will ever wake up and figure it out.

Sheila O'Mara, you wrote this article. Now your next article should be an investigative piece of real journalism. If you don't find that interesting, then you are not serving your readers any better than Fox News.
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