Under the terms of the agreement, Oaktree will acquire all of Furniture brands’ assets except its Lane business via a court-supervised auction.
This bid will serve as a starting point for a sale process for the company, which may include other bidders, Furniture Brands said in a statement.
In addition, Oaktree has agreed to provide $140m in debtor-in-possession (DIP) financing including $50m of new liquidity.
Furniture Brands chairman and CEO Ralph Scozzafava said, “Our portfolio includes some of the most well respected brands in the furniture industry, and we are pleased to be partnering with Oaktree, which has deep experience working with Furniture Brands and other companies in our industry.
“We are highly confident that as a result of these actions, we will protect our valuable franchise and emerge as an even stronger company.”
Last month it was reported that Australian clothing brand Billabong International was considering a refinancing package from Oaktree and private investment firm Centerbridge Partners.
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