Court clears way for Stoneville purchase
By Jeff Linville -- Furniture Today, April 28, 2002
STONEVILLE, N.C. — A federal bankruptcy court has approved casual dining producer Stoneville Furniture's reorganization plan, paving the way for management to purchase the company.
The 76-year-old manufacturer has been operating under Chapter 11 bankruptcy protection since July 2001.
President Robert Koenig said he and other managers expect to buy Stoneville from River Associates of Chattanooga, Tenn., effective May 1. The others are Dave Gleasman, chief financial officer; Kelly Smith, vice president of sales; Cary Smithey, vice president of manufacturing; and William Vernon, purchasing manager.
"I am thrilled that it all went through," said Koenig. "Our unsecured creditors overwhelmingly approved it."
He said he believed the key to Stoneville's future success is to increase volume, spreading coverage throughout the United States. Most retailers have stayed with the company, he said, but new customers also are needed.
In product, Koenig said that Stoneville only imports about 20% of its line and is looking at bringing in more to fill product areas where the company is lacking.
He added that market traffic and sales have been good so far, and he expected this market to end up well ahead of last fall. Stoneville has a new lifestyle collection called Espresso Café. The company shows in the International Home Furnishings Center, space M1030.
Koenig and his partners have formed Stoneville Furniture Acquisition Co. to buy the old company's assets and name. Operations will continue with no expected job losses.
Court documents list Stoneville's debt as between $10 million and $50 million, with assets between $5 million and $10 million. Koenig said the company has secured a commitment for debt financing.
Stoneville makes promotional to midpriced metal casual dining furniture and fully upholstered parsons chairs, in its 450,000-square-foot facility here.
| Koenig |
-
Leary joins Hendricks as finance VP, controller
Oct 17, 2009 -
Banner Mattress emerges from Chapter 11
Jun 2, 2009 -
American Home emerges from Chapter 11
Mar 29, 2010 -
American Home emerges from Chapter 11
Mar 23, 2010
VIEW ALL GALLERIES
