iHome set to buy Strouds for $38 million
February 12, 2001-- Home Textiles Today,
CITY OF INDUSTRY, Calif. — If the Bankruptcy Court gives it the nod, Strouds will sell the assets of its business to ihome.com for approximately $38 million. This would include 50 stores, two distribution centers, the corporate headquarters and additional assets including all trade names, trademarks, copyrights and the company website.
The sale agreement is supported by Strouds' unsecured creditors' committee and the boards of directors of both companies,
"Since the company's voluntary Chapter 11 filing in September 2000, management and the board of directors have been exploring various alternatives that would result in maximum recovery to our creditors and, at the same time, have the lease impact on the jobs of our employees," said Thomas Paccioretti, president and ceo. "After careful consideration, it was determined that sales of substantially all company assets is in the best interest of Strouds' creditors, employees, customers and suppliers. Management believes that under new ownership, the Strouds business will be able to capitalize on its industry leader position, while having access to greater financial resources."
Paccioretti will continue to serve as president and ceo of Strouds and the existing corporate headquarters and distribution facilities here will remain operational. The sale is scheduled to be completed in March.