Heritage Home Group LLC Announces Stalking Horse Agreement for Broyhill and Thomasville & Co. Brands
HIGH POINT, North Carolina – August 31, 2018 – Heritage Home Group LLC (“HHG” or the “Company”) today announced that it and its affiliates have signed an agreement for a newly-formed entity of Authentic Brands Group and SB360 Capital Partners LLC (the “Stalking Horse Bidder”) to acquire HHG’s Broyhill and Thomasville & Co. (including Thomasville, Drexel and Henredon) brands and to serve as the stalking horse bidder for these brands and related intellectual property assets in a court-supervised auction expected to take place within the next 60 days.
Authentic Brands Group (ABG) is a brand development, marketing, and entertainment company which owns a global portfolio of entertainment and lifestyle brands. SB360 Capital Partners (SB360) is one of North America’s leading asset realization firms, providing innovative solutions for complex business challenges.
This agreement relates only to the Thomasville & Co. and Broyhill brands, and it does not affect the previously-announced agreement for the Luxury Group business unit by an affiliate of RHF Investments.
The Stalking Horse Bidder’s valuation of $22 million for the Broyhill, Thomasville, Drexel and Henredon brands represents a baseline bid, and it is subject to higher and better offers in the upcoming auction. HHG is continuing discussions with multiple interested parties, including strategic buyers, for both its Broyhill and Thomasville & Co. business units, and plans to announce the winning bidders once the auction is completed.
“This agreement with the Stalking Horse Bidder for the Broyhill, Thomasville, Drexel and Henredon brands is a clear sign of the value of these beloved names in the furniture industry,” said Chief Restructuring Officer Robert Albergotti. “We have received further interest in the brands and these business units and look forward to continuing these discussions in the period leading up to the auction. HHG continues to focus on servicing our customers throughout this process, and we remain grateful for the support of our employees, customers and all other stakeholders.”
About HHG: Heritage Home Group is a world leader in designing, manufacturing, sourcing and retailing home furnishings and is made up of three unique business units: Broyhill, Thomasville & Co. and the Luxury Group. Broyhill has tremendous brand recognition, broad product assortment and wide appeal serving the mid-market price range. Thomasville and Co. is made up of the Thomasville, Drexel and Henredon brands, which offer three distinctive design territories with a classic, contemporary and luxe style aesthetic, respectively, and are sold through corporately owned Thomasville stores and independent retailers. The Luxury Group, comprised of Hickory Chair, Pearson and Maitland-Smith, targets the interior design channel and also sells through high-end luxury retail furniture and boutique stores. Heritage Home Group is headquartered in High Point, NC.
About Authentic Brands Group: Authentic Brands Group (ABG) is a brand development, marketing, and entertainment company, which owns a global portfolio of entertainment and lifestyle brands. Headquartered in New York City, ABG manages, elevates, and builds the long-term value of more than 33 consumer brands by partnering with best-in-class manufacturers, wholesalers, and retailers. Our brands have a global retail footprint in more than 50,000 points of sale across the luxury, specialty, department store, mid-tier, mass, and e-commerce channels and more than 4,390 branded freestanding stores and shop-in-shops around the world. ABG is committed to transforming brands by delivering compelling product, content, business, and immersive brand experiences. We create and activate original marketing strategies to drive the success of our brands across all consumer touchpoints, platforms, and emerging media. ABG’s global portfolio of iconic and world-renowned brands includes Marilyn Monroe®, Mini Marilyn®, Elvis Presley®, Muhammad Ali®, Shaquille O’Neal®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Michael Jackson® (managed brand), Nautica®, Aéropostale®, Juicy Couture®, Jones New York®, Herve Leger®, Judith Leiber®, Frederick’s of Hollywood®, Frye®, Adrienne Vittadini®, Taryn Rose®, Misook®, Hickey Freeman®, Hart Schaffner Marx®, Spyder®, Tretorn®, Tapout®, Prince®, Airwalk®, Vision Street Wear®, Above The Rim®, and Hind®. For more information, please visit ABG-NYC.com.
About SB360 Capital Partners, LLC: SB360 Capital Partners, a Schottenstein Affiliate, is one of North America’s leading consulting, business evaluation, asset acquisition, and asset disposition firms. SB360 is the parent entity operating: Second Avenue Capital Partners, a lending platform providing financing solutions for mid-market companies; SBC Logistics’ Asset Recovery Center in Columbus; and, other SB360 business units focused on real estate advisory and commercial real estate investments. In addition, SB360 Capital Partners makes equity investments in retail, wholesale, and consumer product companies. The principals of SB360 hold extensive commercial interests in national retail and wholesale operations; internationally recognized consumer brands; commercial, residential, and industrial real estate properties; and financial service operations. For more information, please visit www.sb360.com.