The parent company of furniture brands including Thomasville & Co. and Broyhill has filed for bankruptcy protection.
Heritage Home Group LLC filed for Chapter 11 bankruptcy protection on Sunday, a move that will enable the company to secure funds to help it pay down $280 million worth of debt, according to the Wall Street Journal.
The company blames its financial problems on changing consumer patterns and industry conditions, sharper competition and a loss of faith by retailers in its ability to deliver product, the report said.
The company already has a $17.45 million offer from RHF Investments Inc. for its luxury line, which consists of the Hickory Chair, Pearson, Maitland-Smith, and La Barge brands. That deal could close by September. Another deal is currently being negotiated for the company’s Broyhill and Thomasville business units, according to an affidavit.
Based on these transactions, Home Heritage will apply up to $98 million to refinance existing debt, and some working capital. The company also anticipates spending about $60 million to support its business through the end of October, according to the bankruptcy documents.
This is not Heritage Home Group’s first bankruptcy filing. The company evolved following the 2013 bankruptcy of the Thomasville, Broyhill and Lane furniture brands.