A major furniture company based in High Point has filed for bankruptcy.
Heritage Home Group LLC filed for Chapter 11 over the weekend. It's the parent company to the iconic Thomasville and Broyhill furniture brands. According to the company's website, it's negotiating with a potential buyer for both of them.
The company says it's also selling its luxury furniture division. That includes local brands like Hickory Chair, Maitland-Smith and Pearson brands, along with related operations in Hickory, North Carolina and elsewhere.
“It's been a struggle for them ever since they took over from Furniture Brands in 2013, a company that also filed bankruptcy, so it's a disappointment,” says Tom Conley with the High Point Market Authority.
How all of this will impact the local community isn't clear right now. Conley says there are a lot of open-ended questions.
“Our first thought is, 'what about the employees?' And because they are in High Point there are a fair number of employees that we are concerned about. It's a developing situation and one that we are going to watch carefully.”
Heritage Home Group says it has obtained financing to support the company‘s operations during the restructuring and sale process.
“There is not anticipated to be any material change in HHG's operations through the commencement of the sale process,” says HHG in a news release on its website. “Employees will be paid as usual, customers should see no interruption and suppliers will be paid for goods and services provided after the filing date.”
Heritage Homes Group says it expects to provide more information about the Thomasville and Broyhill Furniture brands in the coming days.
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