SB360 Case Study

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. To recover from its weakened position, HHG formed three separate business units to refocus the brands and revive consumer loyalty based on each brand’s target audience. Those efforts proved to be too little, too late. It became increasingly clear that the only path to the brands’ survival was 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.

The Solution:

SB360’s historic furniture experience and direct furniture affiliations gave us insight into 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. The Thomasville & Co. banner also included 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 company’s wholesale businesses 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 brands’ preeminence, our resources, and a strategic relationship to provide the most comprehensive solution and maximize recovery for all constituents.