SB360 Case Study
Heritage Home Group (HHG), a home furnishings company with some of the most iconic furniture brands in North America (Broyhill, Thomasville, Henredon, Drexel, Hickory Chair, Pearson, Maitland-Smith, and Lane), had seen its business fortunes decline for several years. It had become clear that the only path to the survival of the brands would be through divestiture.
Established in 2013 as the parent entity of Broyhill, Thomasville, Henredon, Drexel, Hickory Chair, Pearson, Maitland-Smith, and Lane, Heritage Home Group (HHG) struggled with debt exacerbated by falling revenues. In a bid to recover from its weakening position, HHG formed three separate business units to refocus the brands and revive consumer loyalty based on the target audience of each brand. Those efforts proved to be too little, too late. It became increasingly clear that the only path to survival of the brands would be through divestiture. After selling one division to another furniture manufacturer, HHG took steps leading to a bankruptcy filing while exploring sales of its remaining business units.
SB360’s historic furniture experience and direct furniture affiliations gave us insight to the untapped value of these legacy brands. We developed a hybrid solution to satisfy the needs of all stakeholders while ensuring the survival of certain brands. We joined with one of our strategic partners, Authentic Brands Group, a global brand development and marketing company, as the successful bidders in a competitive auction for the intellectual property (IP) of Thomasville & Co., and Broyhill. Included under the Thomasville & Co. banner were two additional brands, Henredon and Drexel Heritage. In addition to acquiring the company’s IP, SB360 separately won the bid to manage the wind-down of 25 stores across 14 states, liquidating inventory in the stores, the distribution centers, and additional inventory already in the manufacturing pipeline. To facilitate the disposition of wholesale inventory, SB360 operated the wholesale businesses of the company and disposed of all wholesale merchandise. This included a buildout scenario of converting raw materials into finished goods. Through our integrated offering, we leveraged the preeminence of the brands, our resources, and a strategic relationship in order to provide the best comprehensive solution to maximize recovery to all constituents.
SB360 Capital Partners delivers results.
• Monetized over $100,000,000 of retail and wholesale inventory located in 25 stores and the distribution centers
• Fulfilled all customer deposits and completed unfinished custom orders
• Sold all furniture, fixtures and equipment in stores and DCs
• Unlocking new growth opportunties for the brands by engaging with current and untapped audiences
SB360 Capital Partners delivers innovative solutions to help companies work through complex business challenges. We’ve helped hundreds of businesses manage change, restructure assets, turn around dwindling profitability, and convert underperforming assets into newfound liquidity.
Minimize the risk. Maximize the recovery.
SB360 Capital Partners
SB360 delivers a full spectrum of services to retailers, wholesalers, and manufacturers of all sizes. We offer timely, flexible, and creative solutions inspired and developed by seasoned retailers and merchants. Our principals and merchants have managed thousands of stores and billions of dollars in wholesale and retail inventory.
As the company that defined asset value maximization, SB360 remains at the forefront of the industry by providing innovative solutions for complex business challenges. We’ve helped hundreds of businesses manage change, restructure assets, turn around dwindling profitability, and convert underperforming assets into newfound liquidity – and we’ve done it more effectively than anyone else.