Fortune Group initiated and advised on the $37 million recapitalization
of Hillsdale Furniture, LLC of Louisville, Kentucky, a rapidly
growing designer, importer and marketer of bedroom, dining
room, occasional and accent furniture sold to mail order,
mattress and furniture retailers nationwide.
In order to maintain and potentially grow the value of their
company in an increasingly competitive environment, Company
management knew they would need to take the business to the
next level. To do so would require the investment of additional
capital and risking their personal wealth and lifestyles.
While still relatively young, these were risks management
was not willing to take. The management shareholders of Hillsdale
actually sought to monetize some of the value they had created
in building the Company in order to diversify their personal
After evaluating various alternatives on behalf of the Company’s
management shareholders, The Fortune Group identified Clearview
Capital, LLC as an ideal financial partner for Hillsdale.
Clearview’s previous experience in the furniture industry
as well as its track record of success in partnering with
management teams made the firm an ideal candidate for the
transaction. Hillsdale’s management shareholders were
able to achieve several important objectives through its transaction,
- Receiving a full and fair value, in cash, for a majority
of their holdings in the Company allowing them to gain personal
liquidity and net worth diversification;
- Retention of a significant equity interest to participate
in the Company’s upside;
- Retained daily operating control thereby preserving the
- Elimination of personal guarantees of bank credit facilities;
- Access to capital for future expansion.
The success of the Hillsdale transaction was due in part
to The Fortune Group’s experience in consumer products,
specifically the furniture industry, and our ability to identify
several qualified financial partners with objectives compatible
with those of the Company.