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Hillsdale Furniture, LLC Recapitalization

Hillsdale Furniture, LLC RecapitalizationThe 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 estates.

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, including:

  • 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 Company’s independence;
  • Elimination of personal guarantees of bank credit facilities; and
  • 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.