Heritage Home Group – Court Approves Sale of Luxury Brands Business to Hickory Chair, LLC for $17,450,000

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September 26, 2018 – The Court hearing the Heritage Home Group case approved the sale of the Debtors’ Luxury Brands Business assets, including the Debtors’ Hickory Chair, Maitland-Smith and Pearson brands, to Hickory Chair, LLC (the “Purchaser”) [Docket No. 324]. The auction previously scheduled for September 20, 2018 was cancelled as the Purchaser was the only Qualified Bidder. As previously reported [Docket Nos. 13 and 193], “The aggregate purchase price for the Luxury Brands Business assets also called ‘Acquired Assets’ will be $17,450,000 (the ‘Base Amount’), plus the Net Working Capital Surplus, minus the Net Working Capital Deficit, plus the assumption of Assumed Liabilities (collectively, the ‘Purchase Price’)….The Stalking Horse Bidder has submitted a good-faith deposit of $1,310,000.” The present Court order notes, “At Closing, all proceeds from the sale of the Acquired Assets net of fees, costs and expenses approved by DIP Agent (the ‘Net Proceeds’), shall be paid in cash by wire transfer to DIP Agent to be applied to the Obligations in accordance with the terms of the DIP Order and the DIP Financing Documents (as defined in the DIP Order). The Net Proceeds shall be paid to DIP Agent without any setoff or deduction of any kind other than as set forth in the Asset Purchase Agreement.”

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