Berkline says it will shut down, liquidate
March 30, 2011-- Furniture Today,
Officials at Berkline, best known for its motion upholstery and home theater seating, said they had been trying to sell the company as a going concern for several weeks, but had been unable to find a buyer and secure the needed financing.
"It has determined that an orderly liquidation of substantially all of the company's assets is the only viable course of action," Berkline said in a statement this morning.
The statement said company officials are disappointed by the decision to liquidate, and regret the impact it will have on employees, customers, suppliers and the Morristown community.
The company said the fourth quarter of last year was particularly difficult period, "and led to a further erosion of its financial position."
Berkline, which is principally owned by private equity firm Sun Capital, hired a financial adviser earlier this year to pursue a sale and explore other strategic alternatives.
The company also confirmed that it won't show at this week's High Point Market.