Investor acquires Sunset Trading
Importer had been in bankruptcy since July
Thomas Russell -- Furniture Today, December 13, 2007
LONDONDERRY, N.H. — A private investor based in Philadelphia has purchased the assets of casual dining and youth furniture importer Sunset Trading.
Company officials declined to reveal the name of the investor or the amount of the purchase, which closed Dec. 10.
The investor purchased the assets from creditor Wells Fargo Bank, which sought a buyer after having the company moved from a Chapter 11 to Chapter 7 bankruptcy in early November.
The deal announced this week ends months of uncertainty for the company and its parent, G.P.S. Furniture International, which filed for voluntary Chapter 11 bankruptcy protection in July.
Since then, according to the company, Sunset Trading has been trying to reorganize the business, which had financial difficulties stemming from the placement of high antidumping duties on Chinese-made wood youth bedroom groups it imported. The company also faced difficulties resulting from soft retail conditions.
The investor has retained the management team that includes Harry Leighton, who will oversee sales, marketing and product development; Jim Conway, who will oversee operations and warehouse/distribution activity; and Gary Chase, previously president and CEO, who will be a key account representative.
The new owners have not named a president or CEO.
Leighton and Chase purchased Sunset Trading from business partners Kenneth Smith and Gary Stanieich in 2005. They relinquished that ownership stake as part of the Chapter 7 filing.
Leighton said he has spent the past several months primarily working with banks, accountants and lawyers involved in the bankruptcy proceedings. The purchase, he said, allows him and his team to focus on selling furniture.
“We are very positive about it,” he said.
Leighton said that despite a challenging retail environment, he believes the company will be successful.
“I am not naïve — I know things are slow, but I just feel there is a niche in the market place for us and I look forward to pursuing that,” he said.
Casual dining represents some 80% of sales. The remainder is youth bedroom furniture, a category Leighton sees expanding.
As part of the bankruptcy proceedings, the company ceased leasing its showroom in the Center Point building in High Point after the October market. Unless it gets a lease arrangement in place by the April show, Leighton said the company will not will likely show there until next October.
Sunset Trading will remain based in Londonderry and will employ a staff of 12. Leighton said he expects the company’s warehouse operations there to be fully stocked by early spring.
Chase said he was grateful to the company’s customers and factories overseas for their support during the bankruptcy process.
“I am floored by how well the factories overseas have worked with us and that some of our larger customers have stayed with us,” he said.
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Sunset Trading acquired
Dec 16, 2007
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