Clint Engel — Furniture Today,
SALEM, N.H. — The owner of Furniture World here and the affiliated Mattress World has

formed a strategic alliance with SB Capital Group and other investors in a deal that is infusing the 10-store retailer with capital.

The alliance between Furniture World and SB Capital, Kimco Realty, the Nassi Group and senior executives of promotions and liquidations specialist Planned Furniture Promotions involves the sale and leaseback of the New Hampshire retailer’s real estate. The new investors also will assist the retailer “in its go-forward operating strategies,” according to a press release.

All 10 stores will continue to operate. Financial terms of the deal were not disclosed.

Planned Furniture Promotions managers involved in the Furniture World deal are vice presidents Mark Bannon, Roy Hester and Burt Homonoff. The three, along with SB Capital, also teamed to acquire 27-store, Atlanta-based Leath/Modernage in July for an undisclosed amount.

“We are excited about our new strategic alliance and fully expect this venture to introduce new ideas and energy into the company,” said Mark Bedrick, president and owner of Furniture World and Mattress World.

He said his stores have competitors with “deep pockets and a lot of resources. … To maintain a competitive advantage, I felt it would be important to team up with some guys that have stronger resources than we do going forward, and we want to grow the company and be able to move forward on a better platform.”

Bedrick operates full-line Furniture World stores in Salem, Windham, Nashua and Manchester, N.H.; five Mattress World stores in Concord, Rochester, West Lebanon, Seabrook and Portsmouth, N.H.; and a Leather Expressions specialty store in Salem.

“Everything is pretty much business as usual,” said PFP’s Bannon. “Furniture World is really a fantastic retail operation.

“They have great facilities, a really good team of people, and they are really the predominant furniture retailer in this region. We’re very pleased to be involved with them.”

Scott Bernstein, SB Capital principal and chief operating officer, said that the real estate acquisition and “operational alliance … fits squarely within our strategy of working with and supporting retailers.”

SB Capital is an affiliate of Schottenstein Stores, which owns Columbus, Ohio-based Value City Furniture, Value City Department Stores, DSW Designer Shoe Warehouse and American Eagle Outfitters.