Kravat may buy Brunschwig & Fils out of Chapter 11
January 18, 2011-- Home Textiles Today,
White Plains, N.Y. - Brunschwig & Fils, a 111-year-old distributor of upper-end wall coverings and upholstery fabrics, has filed for Chapter 11 bankruptcy protection but may be rescued by competitor Kravet Inc.
The White Plains, N.Y.-based Brunschwig & Fils listed assets of $10.9 million and debt totaling $18.4 million, according to documents filed in the U.S. Bankruptcy Court here. The company's largest unsecured claim for $3.4 million is to the Pension Benefit Guaranty Corp.
The family-owned company cited a decline in sales of 35% in 2009, followed by a 30% decrease in 2010. The company attributed it to lack of consumer spending.
Meanwhile, Kravet has offered $6.5 million in cash plus other considerations. Brunschwig wants other offers by March 3, with an auction not more than two days later to see if anyone will top Kravet's offer.
Brunschwig said it has no plans to close its 17 showrooms in the U.S. and three abroad, where it offers 17,000 fabrics and 12,000 wall coverings to the trade.
"The restructuring is a business decision that will not affect the quality of our products, or present and future orders," said Brunschwig CEO Olivier Pearson said in a statement. "Our relationships with the lines we represent remain intact and the Brunschwig & Fils Design Studio is creating new patterns for future release."
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