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Furniture Brands Hiring Approvals Sought

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Furniture Brands International filed with the U.S. Bankruptcy Court a motion to retain PricewaterhouseCoopers (Contact: Brian Sprick) as accounting and tax advisor at the following fee structure: Interco statement of works (So W) at $70,000, accounting So W at 62,500 and income tax So W at 98,000. The motion explains, “The Debtors request authority to employ and retain PwC nunc pro tunc to the Petition Date: (a) under the terms and conditions set forth in that certain Statement of Work between FBN and PwC (the ‘Interco SoW’) to analyze intercompany transactions between the Debtors and their non–debtor foreign affiliates to provide advice related to, among other things, pricing policies and intercompany contracts for the 2012 fiscal year; (b) under the terms and conditions set forth in that certain Statement of Work between FBN and PwC (the ‘Accounting SoW’) to prepare consolidated financial statement tax provisions and related balance sheet accounts; and (c) under the terms and conditions set forth in that certain Statement of work between FBN and PwC (the ‘Income Tax SoW’) to prepare the U.S. Corporation Income Tax Return for the Debtors for the fiscal years ending December 29, 2012, December 28, 2013 and January 3, 2013.” The Company also filed a motion to retain KPMG (Contact: Kenneth G. Grapperhaus) as auditors and tax consultants at the following hourly rates: partner at $375 to 500, senior manager at 300 to 450, manager at 250 to 350, senior associate at 210 to 275 and associate at 115. The motion explains, “KPMG is a firm of independent public accountants as defined under the Code of Professional Conduct of the American Institute of Certified Public Accountants. KPMG has diverse experience and extensive knowledge in the fields of accounting, taxation and internal controls for large sophisticated companies both in chapter 11 as well as outside of chapter 11. KPMG has provided services for Debtors for more than 25 years. By virtue of its prior engagements, KPMG is familiar with the books, records, financial information and other data maintained by the Debtors and is qualified to continue to provide audit and tax consulting services to the Debtors. As such, retaining KPMG is an efficient and cost effective manner in which the Debtors may obtain the requisite services.”

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