The firm has also agreed to provide $190m of debtor-in-possession(DIP) financing for the business to support its ongoing operations.
That bid, which included providing $140m of DIP financing, served as a starting point for the sale process.
KPS’ bid includes Furniture Brands’ Lane business, which the Oaktree offer did not.
KPS partner Raquel Vargas Palmer said, “We are pleased to reach this agreement to acquire substantially all of the assets of Furniture Brands.
“We believe there is exceptional value in the Furniture Brands businesses that can be realized through considerable operational improvements and focused investments behind all of the company’s brands.
“The KPS transaction is fundamentally and structurally different than the proposed transaction entered into by the debtor at the time of its Chapter 11 filing as it keeps all of Furniture Brands’ businesses together and positions the company for long-term success in its markets.”
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