HIGH POINT, NC – The iconic Stanley Furniture Co. will sell almost all of its assets to Churchill Downs, a limited liability company linked to the Vietnam Trade Alliance. Stanley will sell the assets for $ 11.5 million in cash, a $ 4.6 million secured subordinated promissory note and a five percent stake in Churchill’s parent company after closing.
Stanley will retain certain assets, including cash of up to $ 1.5 million.
Churchill Downs is a limited liability company founded by Walter Blocker, chairman of the Vietnam Trade Alliance in Ho Chi Minh City.
“Stanley is an iconic furniture industry company dating back to 1924 with a history of excellence,” Blocker said. “We are proud to have entered into an agreement to acquire the Stanley business and look forward to building on the company’s great history after the transaction closes.
The closing of the asset sale, which is subject to the approval of Stanley shareholders, is expected to close in early 2018.
Stanley says he has no plans to liquidate. Its board of directors will assess alternatives for using the $ 11.5 million cash consideration, which should include using a portion of the money to buy back common stock or pay a special dividend to individuals. shareholders.
Founded in 1924, Stanley Furniture Co. is an overseas design, marketing and sourcing resource in the high-end segment of the residential wood market. The company offers a diverse product line supported by an overseas sourcing model and markets its brands through the wholesale network of physical furniture retailers, online retailers and interior designers worldwide. , as well as through direct-to-consumer online sales.