Leath Furniture Has New Owners

Furniture World Magazine

Leath Furniture, LLC , a leading privately held furniture and accessory retailer, announced that President and CEO Ron Phillips, CFO Barbara Snow, and Jolene Takemura, Vice President of Merchandising, have joined with SB Capital Group, LLC and certain senior managers of Planned Furniture Promotions, Inc., to purchase the Company through a management led buyout. As part of the transaction, the company will enter into a working capital financing agreement with The CIT Group/Business Credit. Under the new ownership, the Company will continue to operate all 27 stores in 6 states under the Leath Furniture and Modernage banners. Ron Phillips, who will continue as CEO in the new entity, stated; "We are grateful to Mack Robinson for his tutelage during his 16 years as owner of the Company. Looking forward, we are excited with our new partnership and fully expect this venture to introduce new ideas and energy into the Company. It is our expectation that with the availability of our new working capital line and the help of our partners, we will enter a new era of growth for the Company." Scott Bernstein, principal and COO of SB Capital Group, LLC, said "Leath is an acquisition that fits squarely within our strategy of acquiring retailers with growth potential. Through our successful history of buying businesses and intellectual property, we know how to rebuild a company's assets. We are excited to be a part of this venture and have the opportunity to work with Ron and his team and the senior managers of Planned Furniture Promotions to make Leath the predominant furniture retailer in its niche markets." Leath Furniture, with corporate offices in Atlanta, has 27 stores. The majority of them ( 20 ) are in five miwestern states with 7 in Florida that operate as Modernage Furniture, a division of Leath Furniture. For more information, visit www.leathfurniture.com and www.modernagefurniture.com. SB Capital Group is an affiliate of Schottenstein Stores Corporation, owners and operators of Value City Department Stores, DSW Designer Shoe Warehouse, Value City Furniture and American Eagle Outfitters. SB Capital Group purchases a wide variety of assets, including inventory, machinery & equipment, account receivables, brands, and real property. SB Capital leverages its corporate operating experience with its financial and legal strength, extensive distribution channels, and global connections, to provide the most complete suite of value maximization services. SB Capital Group operates throughout North and South America and Europe with offices in Columbus, Ohio, New York, Toronto and Birmingham, England. For further information on SB CapitalGroup visit www.sbcapitalgroup.com.