Phoenix Investors has acquired the warehouses and factories of Lane Furniture, one of the largest U.S. upholstered furniture makers and distributors, for $65 million in a bankruptcy sale, another repercussion of the woes that sector has experienced as consumers cut back on big-ticket discretionary spending.
The Milwaukee-based company purchased a portfolio of 15 sites from Lane's parent company, United Furniture Industries, which is based in Tupelo, Mississippi. Those holdings included the Lane brand’s core manufacturing and distribution properties, along with its surplus land holdings, spanning roughly 5 million square feet and 626.5 acres across Mississippi and North Carolina, B. Riley Real Estate said in a statement.
In April, B. Riley announced it was acting as the exclusive real estate adviser in United Furniture's Chapter 11 filing, putting its holdings on the block as part of the company's liquidation. B. Riley led an expedited sale of the company's assets, a process that concluded Wednesday. The sale will generate enough proceeds "to deliver full recovery" to secured creditors who hold liens on those assets, B. Riley said Thursday.
Lane Furniture, founded in 1912, is one of several casualties in the domestic furniture business following the pandemic. The industry enjoyed a lift during COVID-19 when homebound Americans spent to improve and furnish their dwellings. But that was followed by a downturn post-pandemic when high inflation, the end of federal subsidies and a shift in consumer spending on services rather than goods, put a crimp in furniture sales. Just this past weekend, Mitchell Gold + Bob Williams abruptly shut down its furniture factories and stores.
United Industries made headlines last year right before Thanksgiving when it abruptly laid off 2,700 employees and shut down. It filed for Chapter 11 in January.
The properties sold were:
- 3761 Old Glenola Road, Trinity, North Carolina.
- 100 United Furniture Drive, Lexington, North Carolina.
- 315-325 Kettering Road, High Point, North Carolina.
- 401 W. Hanes Mill Road, Winston-Salem, North Carolina.
- 3301 Adams Farm Road, Beldon, Mississippi.
- 5380 Highway 145 South, Tupelo, Mississippi.
- 60063 Puckett Drive, Amory, Mississippi.
- 212 108th St., Amory, Mississippi.
- 431 E. Monroe Ave., Okolona, Mississippi.
- 30440 MS-41, Nettleton, Mississippi.
- 389 Highway 6 E, Nettleton, Mississippi.
- Shackleford Parcel, Nettleton, Mississippi.
- 210 E. Sweet Potato St., Vardaman, Mississippi.
- 61312 Highway 278, East Amory, Mississippi.
- Laster Road, Okolona, Mississippi.
B. Riley assisted in the bankruptcy sale by securing multiple stalking-horse bids, helping the bankruptcy trustee select the approved bid and coordinating required additional diligence to facilitate the eventual transaction closed.