Furniture Brand International Inc., the maker of furniture brands such as Thomasville, Broyhill, Lane and Drexel Heritage has filed for Chapter 11 bankruptcy protection. The company is one of the largest furniture manufactures in the U.S.. The St. Louis based company, struggled like many other companies after the collapse of the housing market and foreign competition. The furniture maker is selling all but its Lane business to Los Angeles based distressed-debt investor Oaktree, subject to higher bids at a bankruptcy auction. The furniture brands listed assets of $546.7 million and debt of $550.1 million in its initial petition.
Firms that specialize in investing in distressed debt are sometimes referred to as vulture funds. They buy the debt at a huge discount and hope to regain a high return if the company does not go bankrupt or defaults. Investors try to influence the process in which the issuer restructure its debts, and may also invest new capital in the struggling company in the form of debt or equity.
Furniture Brands had sales of about $1 billion in 2012, roughly half its total a decade ago. The company lost more than $91 million in its last two fiscal years, and analysts are predicting another loss in 2013. It hasn’t made a profit since 2006. Further, the company owes more than $200 million in unpaid pension obligations. At the end of 2012, the company employed 5,600 people in the U.S. and another 3,500 overseas.
In a situation like this, the bankruptcy process is a viable long-term solution, which addresses it liquidity challenges. Furniture Brands’ portfolio includes some of the most well-respected brands in the furniture industry, and should find itself in a better financial position once Oaktree steps in.
"Benjamin Wright with Wright Law Office made a very difficult time for us much easier. We were struggling and did not know what our options were. He explained all our options and helped us to make the best financial decision. They made things easy and were always available to answer any questions we had. I would definitely recommend him."
Why should you hire our firm to represent you in bankruptcy?
Great question. Here are a few reasons:
- 1. Bankruptcy is our sole area of practice. Attorney Wright has over 10 years of experience in the field of bankruptcy and has helped over 1000 people successfully file.
- 2. Attorney Wright has an accounting background that is useful in analyzing complex financial documents. Prior to law school he obtained a degree in accounting from the University of Wisconsin School of Business. He exercised his strong numerical aptitude in the field of accounting, including several years with The Kohler Co., before ultimately deciding to pursue a law degree.
- 3. New clients meet with an attorney during their first visit. We understand your time is valuable. It is important your questions are answered quickly and accurately so you can take appropriate steps to secure a better financial future and eliminate fear and stress.
4. In business, referrals are the highest form of professional compliment. We frequently receive referrals from other lawyers and previous clients.
- 5. Our firm is small which enables us to focus on quality over quantity. We don’t have billboards on the I-10 or banners affixed to public transportation. Our approach is a bit more understated. We care about people and doing things right and it shows in our low employee turnover and positive reviews.
- 6. Perhaps the most important consideration is the cost of filing bankruptcy. We continuously assess our fees to ensure we offer fair and competitive pricing. We want to offer you a deal without sacrificing the quality of your experience.
Ways we can help…
What our clients are saying…
Mr. Wright and his staff were amazing. They made a negative situation a lot better and turned it into a positive. Could really tell they care helping people and I will refer their Phoenix Bankruptcy Attorney firm to friends and family. Thanks again.
I called around looking for the right bankruptcy lawyer and came across Benjamin Wright. He personally called me for the consultation seeing how I live in Kingman AZ. He was very helpful from the start and his staff was very friendly and explained any questions I had, sorry for all the questions. I would definitely recommend Wright law offices, and I do!! Thanks for everything, you made what seemed like a hard thing to do simple!! You guys rock!!!
Great lawyer, he really helped my mother out of a jam. She was totally new to bankruptcy and he talked with us for about an hour and a half to make sure she wouldn’t be worried.
Ben is a kind and down to earth attorney. He worked around my busy schedule as a single mom (school, full-time job, and daycare pick up and drop off times). He explained absolutely everything to me and was good about e-mailing. I am writing this review as a THANK YOU.
I had a very positive experience with Attorney Wright. He or his staff returned my e-mails and calls promptly (even after business hours occasionally). His fees were reasonable. He was patient with me when I showed up in court missing an important document. He is aggressive, but fair and nice.