Press Releases

KPS Capital Partners Announces Formation of Heritage Home Group, LLC

Nov 25, 2013

Heritage Home Group Acquires Assets of Furniture Brands International

Ira Glazer Named President and Chief Executive Officer

New York, NY (November 25, 2013) -- KPS Capital Partners, LP (“KPS”) today announced the formation of a new company, Heritage Home Group, LLC, that has acquired substantially all of the assets of Furniture Brands International, Inc., a world leader in designing, manufacturing, sourcing and retailing home furnishings. Heritage Home Group acquired the assets free and clear of substantially all liens, claims, encumbrances and interests through an auction conducted as part of a sale process under Section 363 of the United States Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware formally approved the transaction on November 22, 2013.

Heritage Home Group will operate as an independent company with the long-term support of KPS, a private equity investor with more than $6.0 billion of assets under management and a long track record of successfully transforming businesses and creating profitable, growing companies. Heritage Home Group owns an iconic collection of the furniture and design industry’s leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.

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 also announced that Ira Glazer has been named President and Chief Executive Officer of Heritage Home Group. Mr. Glazer is an executive with three decades of successful turnaround experience and has previously partnered with KPS on a very successful platform.

Raquel Vargas Palmer, a Partner of KPS, said, “This is the beginning of a new era for Heritage Home Group and its brands. 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.

“KPS is delighted that Ira Glazer will serve as President and CEO of Heritage Home Group. 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.

“We are grateful to all of Furniture Brands’ stakeholders for their assistance and cooperation through the transaction process and the formation of Heritage Home Group,” Ms. Palmer concluded.

Mr. Glazer said, “I am honored to lead Heritage Home Group. 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. Ralph worked hard to ensure that Furniture Brands’ assets would be well-positioned for growth and we thank him for his contributions,” Mr. Glazer concluded.

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

Proskauer Rose LLP acted as legal counsel to KPS with respect to the transaction.

About Heritage Home Group

Heritage Home Group is a world leader in designing, manufacturing, sourcing and retailing home furnishings. The company markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multiline/independent retailers and mass merchant stores. Heritage Home Group serves its customers through an unparalleled collection of the furniture and design industry’s leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge. To learn more about these exciting brands, visit our Web sites: www.thomasville.com, www.broyhillfurniture.com, www.lanefurniture.com, www.drexelheritage.com, www.hickorychair.com, www.henredon.com, www.pearsonco.com, www.laneventure.com, www.maitland-smith.com and www.labargeinc.com.

About KPS Capital Partners

KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with over $12.3 billion of assets under management (as of December 31, 2020).  For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.  KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.6 billion, operate 159 manufacturing facilities in 22 countries, and have approximately 34,000 employees, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

← Back to Press Releases

footer-logo

One Vanderbilt Avenue, 52nd Floor
New York, NY 10017
T: 212.338.5100 | F: 646.307.7100

The information set forth in the materials on this site is as of December 31, 2020 and does not purport to be a complete summary of KPS or its investments. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in such materials. No reliance may be placed for any purpose on the information and opinions contained in such materials or their accuracy or completeness and nothing in such materials may be relied upon in making any investment decision. Certain information on or linked to from this site is furnished by or is derived from materials furnished by outside sources. KPS does not assume responsibility for independent verification of such information and has relied on such information being complete and accurate in all material respects. Any information presented by outside sources represents the understandings and opinions of such outside sources, which may differ from those of KPS. Any statements and quotes from third-parties are not selected on the basis of any performance-based data. Any performance information included in any document on or linked to from this site is presented for illustrative purposes only and is not indicative of the future returns of any of the funds managed by KPS and there can be no assurance that such funds will achieve comparable results, be able to avoid losses or be able to implement their investment strategies.

For information on our data processing practices, please read our privacy policy here.