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.