MCLEAN, Va. \u00e2\u20ac\u201d Rowe Cos. and Rowe Furniture have asked the federal bankruptcy court here to allow it to
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\nsell the company to Sun Capital Partners Group IV Inc. for $30 million, subject to outside bids.<\/p>\n
The purchase would be for $24 million cash, with the remainder earmarked to cover pre- and post-acquisition obligations.<\/p>\n
A hearing on the proposal is set for Dec. 15 in the U.S. Bankruptcy Court in Alexandria, Va.<\/p>\n
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.<\/p>\n
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<\/p>\n
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.<\/p>\n
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.<\/p>\n
Rowe CEO Gerald Birnbach said he could not comment on the offer.<\/p>\n
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.<\/p>\n
At the time of the bankruptcy filing, the company reported $93.2 million of debt and $138 million in assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
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