ST. LOUIS–Furniture Brands International said it is “disappointed” that Sun Capital Securities LLC is considering a “costly and disruptive” proxy contest in hopes of electing representatives to the Furniture Brands board of directors.
Sun Capital filed the letter, which asks for shareholder names, with the Securities and Exchange Commission on Friday, March 28.
Sun Capital, which holds approximately 9.5 percent of all outstanding shares of Furniture Brands, also owns several competitors and has a “mixed record of performance in the home furnishings industry,” Furniture Brands said in a statement. “A number of Sun Capital’s furniture industry portfolio investments are currently in bankruptcy, and one of them [Wickes Furniture] is a debtor to Furniture Brands of more than $2 million,” the statement read.
Furniture Brands officials defended their company’s strategic plan and executive team, and said the company is making progress on its goals to return to financial health. “We are building momentum in a challenging operating environment,’’ said Ralph P. Scozzafava, vice chairman and chief executive officer.
