Rowe Furniture, Inc.

Client Profile
Rowe Furniture, Inc. (‘Rowe’ or the ‘Company’) is a manufacturer of high quality, customizable upholstered furniture. The Company’s products are priced within the middle to upper end price points and are sold throughout the United States under proprietary, licensed, and private labels. Despite a high degree of attention to each individual furniture piece, Rowe is able to fill customer orders within thirty days or less. Rowe has annual revenues of approximately $100 million and is headquartered in Elliston, Virginia.
Situation
After suffering operational inefficiencies resulting from software integration, a market downturn, and increased raw materials prices, Rowe filed a Chapter 11 proceeding and determined to sell the business.
Solution
SSG acted as exclusive investment banker to Rowe during its sale process and negotiated the asset purchase agreement with Sun Capital Partners. The Company was marketed to a diverse group of prospective strategic and financial buyers through a Section 363 auction process. Ultimately, Sun Capital Partners’ stalking horse bid was deemed the best value for the Company and its shareholders. The sale closed in January 2006.