MCLEAN, Va. — Rowe Cos. and Rowe Furniture have asked the federal bankruptcy court here to allow it to
sell the company to Sun Capital Partners Group IV Inc. for $30 million, subject to outside bids.
The purchase would be for $24 million cash, with the remainder earmarked to cover pre- and post-acquisition obligations.
A hearing on the proposal is set for Dec. 15 in the U.S. Bankruptcy Court in Alexandria, Va.
A public auction is a requirement of the proceedings, but an upset bid seems unlikely. The filing allows Sun to receive a $1.5 million fee if its offer is upset by a higher bidder, according to court documents.
The private equity company based in Boca Raton, Fla., would add Rowe to a furniture portfolio that includes importer and manufacturer Lexington Home Brands and retailers Mattress Firm, Nationwide Furniture and Wickes Furniture
Sun Capital said it expects to be able to move quickly through the acquisition process and close the deal in as little as 30 days.
Sun indicated in court filings that it will operate Rowe under an affiliate named Lexington-Rowe Furniture. Details are expected to be worked out soon on to how the companies might work together.
Rowe CEO Gerald Birnbach said he could not comment on the offer.
The Rowe Cos. filed for bankruptcy protection in September after reporting a loss of $5.3 million for the year in November 2012 and a loss of $8.3 million for the six-month period ended in May. The company said it would focus its efforts on the manufacturing side of its business, and closed and liquidated its 70-unit, Atlanta-based Storehouse retail chain.
At the time of the bankruptcy filing, the company reported $93.2 million of debt and $138 million in assets.








