FBI now Heritage Home
December 3, 2013,
New York - The house cleaning has begun.
In a few short days, KPS Capital Partners, which received court approval Nov. 22 to acquire Furniture Brands International's assets, has renamed the company Heritage Home Group, LLC and announced the resignations of Ralph Scozzafava as Furniture Brands' CEO, and Dan Masters, president of Lane Furniture. Most recently, Jay Reardon, president of Hickory Chair and FBI CFO Vance Johnstone also left the company.
The company is also working with a new board of directors.
KPS has named Ira Glazer president and CEO of Heritage Home Group, which includes the Broyhill, Thomasville, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge brands. KPS said Glazer is an executive with three decades of turnaround experience who has previously worked with KPS on a successful turnaround.
The announcement marks a major shift for the company, which filed for Chapter 11 bankruptcy protection Sept. 9. Since then the company has operated under an accelerated bankruptcy proceeding to sell the company assets and begin the road to recovery for the beleaguered brands.
In a statement, 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," Palmer added. "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."
In a statement, Glazer said he is honored to lead the new company moving forward.
"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, Glazer said. "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."