ABG Moves Into Furniture With Deal for Heritage Home GroupAuthentic Brands Group (ABG) is making its first move into furniture with a successful $38.5 million bid for Heritage Home Group. The sale is expected to close late this year.

ABG will have a majority stake in a joint venture with Schottenstein Group that will own the Thomasville, Broyhill, Drexel, Drexel Heritage and Henredon brands and place ABG “firmly in the home furnishings business,” CEO Jamie Salter said in a statement. The acquisition includes IP, trademarks, patents and designs, but not the plants, warehouses and offices tied to Heritage.

In partnering with Schottenstein, which owns Value City Furniture (in addition to American Eagle Outfitters and other retailers), ABG would appear to have a ready-made market for the brands.

Heritage filed for bankruptcy July 30 and ABG emerged as the main bidder on Aug. 31. ABG, since its founding in 2010, has largely focused on acquiring fashion and celebrity brands including Jones New York, Aeropostale, Juicy Couture, Nautica as well was Elvis Presley, Muhamad Ali and Shaquille O’Neal and Julies Irving. But it began moving into new categories earlier this fall in acquiring (jointly with footwear retailer DSW Inc.) the IP of footwear supplier Camuto Group.

For Heritage Home, the bankruptcy filing was a reversal of fortunes. In 2013, KPS Capital purchased Furniture Brands International out of bankruptcy for $280 million and renamed it Heritage Home Group. Heritage began paring back its business in late in 2017, selling the Lane and Lane Venture furniture businesses. As part of the bankruptcy, Heritage also is selling  its luxury brands (Hickory Chair, Maitland-Smith and Pearson) to RHF Investments Inc.

Contact:

Authentic Brands Group, Nick Woodhouse, Chief Marketing Officer, 212-760-2410 x2411, nwoodhouse@abg-nyc.com