Levitz Home Furnishings, Inc., parent Company of Levitz and Seaman's furniture stores, announced that its board of directors has approved a revitalization plan that will incorporate the Seaman's brand into its Levitz furniture stores and secure an additional $40 million to accelerate its growth strategy. These initiatives will allow the Company, one of the country's largest furniture retailers, to leverage its scale in an effort to secure a more profitable, stronger and growing position in the home furnishings market in the Northeast and on the West Coast of the United States.
GE Commercial Finance has committed to provide the Company with $20 million in borrowing capacity under its existing loan facility. The Company's majority equity owner, Resurgence Asset Management, a leading private equity firm, will provide a further $20 million of preferred equity investment to support the business revitalization program.
"This program is the logical next step for the Company and will provide us an excellent opportunity to grow as well as improve our service to our customers," said Levitz Home Furnishings President and acting Chief Executive Officer C. Mark Scott. "By showcasing the best of Seaman's products in Levitz stores, we expect to improve significantly our cost structure and capitalize on the strength of two brand names that customers know and trust."
As part of the initiatives announced today, the Company is planning to convert approximately 25 Seaman's stores to Levitz stores, and close the remaining Seaman's stores that overlap geographically with Levitz stores. Combined with the integration of the former Huffman Koos store locations acquired by the Company over the past year, the moves announced today will leave the Company with a significantly enhanced presence in the Northeast of nearly 60 stores in addition to its West Coast presence of approximately 55 stores. The Company and the union representing a portion of its employees have met and agreed to work in the best interest of all parties.
"We expect this plan to improve greatly our competitiveness, and that's good news for everyone -- our customers, employees, investors and suppliers," said Chief Operating Officer Sandeep Chugani. "We'll be able to reduce inventory duplication, harness better economies of scale, increase merchandise selection and improve our use of working capital to support growth."
About Levitz Home Furnishings, Inc.
Levitz Home Furnishings, Inc. is a leading specialty retailer of furniture in the United States with more than 110 locations in major metropolitan areas principally the Northeast and on the West Coast of the United States. Additional information about the Company and its brands is available at http://www.levitz.com/ and http://www.seamans.com/ .
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