HIGH POINT, N.C. -- Heritage Home Group, a High Point-based furniture group, filed for bankruptcy with plans to sell the businesses under its umbrella.
According to a release on the company's website, Heritage Home Group's parent company, HH Global II BV, has filed petitions for Chapter 11 bankruptcy with the U.S. Bankruptcy Court as a way to complete the sale of its businesses.
The company says it has already sold its Luxury business including the Hickory Chair, Maitland-Smith and Pearson brands. There are also letters of intent to buy the Thomasville & Co. and Broyhill units.
The release states the company will receive Debtor In Possession (DIP) financing, which is special financing for companies in financial distress, during the restructuring and sales process. The company says employees should be paid as usual, customers should see no interruptions and suppliers will be paid for good sand services provided after the filing date.
A media contact for Heritage Home Group says the company has about 190 employees in the High Point area, 775 employees in Lenoir and 450 in Hickory.
Thomas Russell, Senior Editor for Furniture Today, says it's not exactly clear what led up to the bankruptcy filing, but it's a sign of an ever- changing industry.
"It’s a signal to companies in the industry that even though you may have a strong brand, change is imminent. There’s change going on all the time.'
Russell spoke to WFMY News 2 over the phone while at the summer furniture market in Las Vegas. He's been tracking furniture trends for more than a decade in the Triad and beyond. He says he doesn't anticipate this shift in business shouldn't impact High Point's role in the furniture world.
"However it shakes out, the industry is on strong footing because we have a strong market in High Point," Russell explains. "People have been making investments in market. There are new buildings going up. People are buying buildings. There is a ton of industry confidence in the High Point market right now."
