United Furniture has begun the sale process of all Lane Furniture real estate as a part of its Chapter 11 liquidation.
On November 22, United’s 2,700 employees were notified via text message and email that the company had chosen to make major layoffs just two days before Thanksgiving. Out of the hundreds of workers, 1,100 were located in north Mississippi.
One month later, Wells Fargo and two additional creditors pressed for United to file Chapter 7 bankruptcy, as United/Lane Furniture owed almost $100 million to the three entities.
Instead, a judge with the U.S. Bankruptcy Court in the Northern District of Mississippi ruled that United could move from Chapter 7 to Chapter 11 bankruptcy in late January.
Now, the company is looking to sell several pieces of Lane Furniture real estate in an effort to pay off its debtors.
Founded in 1912, Lane Furniture operated as one of the largest upholstered furniture manufacturers and distributors in the nation.
The company’s real estate portfolio includes 14 properties strategically located throughout Mississippi and North Carolina with 5 million square feet and over 700 acres of core manufacturing, warehouse, and distribution facilities, in addition to vacant land holdings.
B. Riley Real Estate, LLC is acting as a real estate advisor to United Furniture Industries during the process.
According to B. Riley, the sale offers opportunities for local redevelopment and provides the necessary infrastructure to support a broad range of new manufacturing and distribution uses. Offers for the full portfolio, a subset, and individual properties will be considered.
Stalking horse bids will be accepted through May 12. The portfolio will be sold at a concluding auction, tentatively scheduled for late June 2023. Formal bidding and sale procedures were filed with, and are subject to the approval of the Bankruptcy Court.