Durham Furniture completes restructuring

Oak Bridge Holdings now majority owner

Michael Knell -- Furniture Today, June 19, 2009

DURHAM, Ontario — Durham Furniture has completed its financial restructuring and is no longer operating under court protection, the solid wood bedroom specialist has announced.

Durham sought protection under the Company's Creditors Arrangement Act in January 2008. Its unsecured creditors approved the restructuring plan a few weeks ago.

One of the oldest furniture companies in Canada, Durham's restructuring includes a new long-term debt financing agreement with the Royal Bank of Canada and an injection of equity capital from an investment group led by Kitchener, Ontario-based Oak Bridge Holdings Inc. as well as some of the existing shareholders. Oak Bridge is now the majority shareholder.

John Rose has become chairman of the board. Previous chairman Larry Vollett remains a director.

Gord Dilworth, who was named president and CEO in April, said the company is now well-positioned to execute its strategy and continue its leadership in the design and manufacture of product for the North American solid-wood market.

"We are pleased with the response to our new programs and products that were recently presented in High Point at the spring market," he said in a statement.

Over the next year, Durham intends to regain market share lost over the past 18 months or so. However, Dilworth said the approach will be a cautious one. "We want to grow, but it has to be controlled growth," he said.

Durham operates a factory in this southwestern Ontario community and has showrooms in Toronto and High Point.

The plant in nearby Chesley, Ontario remains closed and is still up for sale.

Durham also has a sales and marketing office in Greensboro, N.C., headed by industry veteran Ed Fritz, Durham's director of sales and marketing.