RH says IPO will raise as much as $150 million

Clint Engel -- Furniture Today, September 21, 2012

CORTE MADERA, Calif. — RH, formerly Restoration Hardware, filed a Securities & Exchange Commission document Wednesday that shows it expects to raise a maximum of $150 million through its initial public stock offering later this year.

The stock will be listed on the New York Stock Exchange with the ticker RH.

The document also confirmed earlier news reports highlighting the circumstances leading to Gary Friedman, former chairman and co-CEO, stepping down from the top posts at the company.

Friedman resigned following an investigation by a special board committee that was "prompted by disclosure that Mr. Friedman and a company employee were engaged in a personal relationship, described by the parties as consensual," the report said.

It said investigation concluded Friedman engaged in activities "inconsistent" with the board's "expectations for executive conduct" and failed to comply with certain company policies.

Friedman became chairman and CEO of Hierarchy, a company that will develop lines including apparel, accessories, footwear and jewelry. RH will have exclusive rights to acquire the new businesses "when they reach an appropriate level of maturity and profitability," it added.

Carlos Alberini, co-CEO of Restoration, became sole CEO, while Friedman will continue to be involved in an advisory role and with the honorary title of chairman emeritus.