ABG Partners with Jay Schottenstein to Prevail at the Thomasville and Broyhill Auction
The Global Brand Owner Joins Schottenstein in the Home Furnishings Industry
with the Acquisition of Heritage Home Brands
October 19, 2018 – New York, NY – Authentic Brands Group (ABG), a global brand owner, marketing, and entertainment company, today announced that it has joined with Jay Schottenstein to emerge as the successful bidder to purchase the intellectual property of Heritage Home Group LLC in an auction conducted under Section 363 of the U.S. Bankruptcy Code. Through a newly-formed company, ABG and entities controlled by Jay Schottenstein will partner to purchase proprietary brands including Thomasville, Broyhill, Drexel and Henredon. ABG takes the majority stake in the acquisition, pushing their portfolio value to nearly $9 billion in annual global retail sales.
“This is a significant step in ABG’s development as the acquisition puts us firmly in the home furnishings business,” said Jamie Salter, Chairman and CEO of ABG. “We’ve been looking at this sector for several months and the Heritage Home brands deliver against our strategic focus of both growing and diversifying the ABG portfolio. “Each of these brands has a unique history and tremendous consumer equity that positions them for global expansion.”
“We are thrilled to once again join forces with ABG on this strategic purchase,” said Jay Schottenstein, Chairman & CEO of Schottenstein Stores Corporation, American Signature Inc./Value City Furniture. “Leveraging their expertise with our long history in the furniture business and the knowledge and operational experience of our own SB360 Capital Partners will further the growth of these renowned American brands.”
Thomasville, Broyhill, Drexel and Henredon are established brands at key home retailers around the world. This foundation will continue to play a vital role in the brands’ evolution as ABG will soon announce new operating partners to produce case goods and upholstered furniture for the brands. ABG plans to unlock the portfolio’s potential by engaging with current and untapped audiences via new categories, refreshed content, and innovative storytelling.
The sale is subject to approval by the Bankruptcy Court and certain customary closing conditions set forth in the purchase agreement. The sale is expected to be completed by the end of 2018.