by Atlanta Furniture Galleries network is 2nd largest among La-Z-Boy Furniture Galleries, with 15 stores, 4 warehouses and about $80 million in annual sales
MONROE, Mich. — Furniture manufacturer and retailer La-Z-Boy Inc. has signed an asset purchase agreement to acquire a La-Z-Boy Furniture Galleries store network in the Southeast region of the United States from Atlanta Furniture Galleries LLC, owned by Tom and Amy DeGoey. The DeGoey business is the second-largest independent operator within the entire La-Z-Boy Furniture Galleries store network, with 15 stores, four warehouses and about $80 million in annual sales.
The company said the acquisition “will provide continuity for the highly successful Southeast-based business. Once complete, the 15 stores will become part of La-Z-Boy Inc.’s Retail reporting segment, will be immediately accretive to sales and profits and will bring the total company-owned store count to 220, 60% of the entire La-Z-Boy Furniture Galleries store network.”
The transaction is expected to close in late October, subject to customary closing conditions.
The company, which did not disclose additional terms of the deal, said it expects to fund the transaction with cash on hand. La-Z-Boy Inc. will provide additional financial information relating to the transaction in its fiscal year 2026 second-quarter results in November.
As La-Z-Boy Inc. is already manufacturing for the acquired business and recording a portion of the annual sales in its Wholesale segment, the acquisition is expected to contribute about $40 million of additional sales annually to the company on a consolidated basis.
“We are pleased to acquire this business in the rapidly growing and strategic Southeast region,” said Melinda D. Whittington, board chair, president and chief executive officer of La-Z-Boy Inc. “These stores are in core markets for us, including Atlanta, Orlando, Jacksonville and Knoxville, and will pave the way for additional growth. We are grateful to Tom and Amy for their commitment to the company over the last two decades, developing one of the most successful independent La-Z-Boy licensee businesses. As strong stewards of our La-Z-Boy brand, they have made meaningful contributions, including innovative retail practices, an updated store network and a strong group of employees. I would like to personally take the opportunity to thank Tom, who has led the business since 2004 and, along with Amy, was recognized in 2024 as our Retail Partner of the Year for the second time. We wish Tom, Amy and their family all the best in their next phase of life.”
Tom DeGoey, CEO of Atlanta Furniture Galleries LLC, said he is grateful to his family and colleagues for helping grow the business over the years.
“It has been a privilege to work with this incredible team of talented, passionate and hard-working individuals,” he said. “La-Z-Boy will have an excellent team of leaders to continue the management of day-to-day operations. I am proud of the company we have built together, and I am confident that our long-time partner La-Z-Boy Inc. will propel the business to new heights. It has been a pleasure to work with the La-Z-Boy Inc. team over the years, as we have expanded the La-Z-Boy brand together.”
Whittington added, “This significant acquisition is another example of creating our own momentum in an increasingly challenging macro environment and investing for our next 100 years despite current headwinds. This is another proof point of La-Z-Boy Inc. continuing to deliver on its Century Vision objectives and growing Retail and direct to consumer. Our vertically integrated model is a key differentiator, and we have the opportunity to further leverage the combined margin associated with earning sales and profit on both Wholesale and Retail sales. We expect a smooth and seamless transition and look forward to continuing to inspire and delight our consumers.”
Separately, in light of the increasingly challenging consumer and macro environment, the company now expects its fiscal first-quarter sales and adjusted operating margin to be around the low end of the ranges in the previously issued outlook for the period ending July 26.
