Walker Edison files for Chapter 11 bankruptcy

Twin-Star International identified as stalking horse bidder for company assets

SALT LAKE CITY — RTA furniture specialist Walker Edison has filed for Chapter 11 bankruptcy protection and hired a restructuring company to help it develop a viable business plan and strategy moving forward.

Competitor Twin-Star International Inc. also has been identified as a stalking horse bidder to acquire most of the company’s operating assets, “subject to higher and better bids.”

In a voluntary petition filed Aug. 28 in U.S. Bankruptcy Court for the District of Delaware, the company cited four debtors including Walker Edison Holdco, Walker Edison Intermediate, Walker Edison Furniture Co. and EW Furniture.

The filing said that turnaround specialist MACCO has been retained to provide business advisory services to the company, which sells wood furniture including bedroom, dining, home entertainment and home office as well as upholstery, including sofas and sectionals. It also sells a line of outdoor furniture.

In the filing, it cited estimated assets between $10 million and $50 million and estimated liabilities between $100 million and $500 million owed to an estimated 1,000 to 5,000 creditors.

The filing said that Walker Edison Holdco is 59.96% owned by Owl Rock Capital, 18.34% owned by Pennant Park, 16.7% owned by Bain Capital and 5% owned by Evolution Credit Partners.

Walker Edison Intermediate is 100% owned by Walker Edison Holdco. Walker Edison Furniture Co. is 100% owned by Walker Edison Intermediate, and EW Furniture is 100% owned by Walker Edison Furniture Co.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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