By MARK REITER, BLADE BUSINESS WRITER<\/p>\n
MONROE – Clayton Marcus, the last of three furniture units put on the selling block this year by La-Z-Boy Inc., has been sold to Rowe Fine Furniture Inc.<\/p>\n
The sale of the upholstered furniture subsidiary was announced yesterday by La-Z-Boy, one of the nation’s largest furniture makers, and Rowe. The purchase price wasn’t disclosed.
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\n Clayton Marcus, a maker of medium to upper-priced upholstered furniture, didn’t fit into the long-term strategy in the operations of the $1.6 billion a year Monroe firm, Kurt Darrow, president and chief executive officer of La-Z-Boy, said in a statement.<\/p>\n
The deal follows last week’s announcement of the sale of Pennsylvania House by La-Z-Boy to Universal Furniture, with no disclosed price. Plans to sell the two furniture units and Sam Moore, a manufacturer of upscale upholstered chairs, were made known in February by the company.<\/p>\n
Industry analyst Jerry Epperson, of Mann, Armisted, and Epperson, said the furniture subsidiaries involved in the recent sales were minor players in La-Z-Boy operations, producing little revenue for the company’s bottom line.<\/p>\n
Clayton Marcus and Pennsylvania House were distractions that took valuable management time that could have been used on other resources, Mr. Epperson said.<\/p>\n
La-Z-Boy has been plagued by sagging sales of furniture products at its company owned stores. In July , the company posted a first fiscal quarter loss of $8.7 million, or 17 cents a share, from the same period a year ago.<\/p>\n
Sun Capital, a subsidiary of private equity investment firm Sun Capital Partners, acquired Rowe Fine Furniture this year in bankruptcy court. Rowe is headquartered in McLean, Va.<\/p>\n
In a statement, Aaron P. Wolfe, vice president of Sun Capital Partners, said the acquisition is part of the strategy to return Rowe to profitability.<\/p>\n
Morgan Keegan & Co.’s Laura Champine, another analyst, said money from the sale of Clayton Marcus and any other holdings is a good revenue source for La-Z-Boy to pay dividends to shareholders.<\/p>\n
“As far as the amount of the payment, I am guessing that it is not much,” she said. “This will have a small impact on the company as a whole. But, it does generate needed cash.”<\/p>\n
John Baugh, an analyst for Stifel Nicolaus & Co., speculated that the deal wouldn’t bring a huge influx of money into the coffers of the furniture company.<\/p>\n
“They are really selling the name. There is no plant and no equipment,” he said. “I question how much money La-Z-Boy got from the sale of Pennsylvania House and Clayton Marcus.”<\/p>\n
Contact Mark Reiter at:
\nmarkreiter@theblade.com
\nor 419-724-6096.<\/p>\n","protected":false},"excerpt":{"rendered":"
By MARK REITER, BLADE BUSINESS WRITER MONROE – Clayton Marcus, the last of three furniture units put on the selling block this year by La-Z-Boy Inc., has been sold to Rowe Fine Furniture Inc. The sale of the upholstered furniture subsidiary was announced yesterday by La-Z-Boy, one of the nation’s largest furniture makers, and Rowe. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-4911","post","type-post","status-publish","format-standard","hentry","category-furniture-indonesia-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/4911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=4911"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/4911\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=4911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=4911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=4911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}