Corinthian bids to acquire assets of PeopLoungers
Clint Engel, Joan Gunin -- Furniture Today, July 16, 2007
Nettleton, Miss. — Upholstery manufacturer Corinthian has bid to acquire the assets of motion specialist PeopLoungers, which filed for Chapter 11 bankruptcy protection earlier this year.
Corinthian President Vic Etheridge and Morty Seaman, a partner in Seffner, Fla.-based retailer Rooms To Go, confirmed that Corinthian has made an offer, but declined to disclose the terms.
They said some details are still in negotiation.
Corinthian, which makes promotional to midpriced stationary upholstery, is owned by Etheridge and members of the Seaman family.
PeopLoungers makes only motion upholstery.
Etheridge said PeopLoungers has opted for what's called a 363 auction of its assets, which could generate additional bids. If Corinthian succeeds in the purchase, the plan is to continue using the PeopLoungers name.
"We think that PeopLoungers has reasonable recognition in the motion field," Etheridge said. "They have a good motion workforce. We believe there is room for a domestic supplier, and we'd like to see if we can't put PeopLoungers in a position where we can become that domestic supplier and save a couple of hundred jobs in the Nettleton, Miss., area."
PeopLoungers President Jimmy Green said, "We are in negotiations. They have expressed interest, but we are a long way away from (completing) the process."
