Being familiar with the two new firms that have entered Armstrong Flooring Inc. bankruptcy proceedings may drop some light-weight on where the legendary Lancaster organization is headed.
The providers, AHF Merchandise and Gordon Brothers, are not creditors, meaning they are not owed money, and they surfaced this week in comparatively plan filings.
Just one has Armstrong Flooring roots – West Hempfield Township-primarily based flooring company AHF made use of to be a part of Armstrong Flooring. In addition, AHF’s CEO employed to get the job done for Armstrong Flooring’s previous parent corporation, Armstrong Environment Industries. Privately held AHF also competes in the identical current market as Armstrong Flooring.
The prospect that AHF is aspect of a offer to invest in aspect of Armstrong Flooring’s North American assets rests on additional than its physical appearance in court proceedings as Armstrong Flooring prepares to ask a judge to approve a deal. On Thursday, AHF declared a required, all-arms assembly for that afternoon as Armstrong Flooring was scheduled to present a deal to the decide. At about the identical time that Armstrong Flooring backed off presenting the deal in court docket, AHF cancelled the meeting.
AHF did not answer to issues from LNP | LancasterOnline inquiring if it expects to be aspect of a offer to get all or section of Armstrong Flooring.
The next title is Boston-based Gordon Brothers, an global broker of consolidations, funding and liquidations.
Presented that Armstrong Flooring introduced Friday that it is doing the job to finalize a deal that would maintain a “substantial portion” of its North American operations, it could be Gordon Brothers’ role to liquidate the remaining areas of the enterprise.
Attorneys for AHF and Gordon Brothers filed requests this week to be admitted into Delaware individual bankruptcy court, a schedule formality in court docket proceedings. The decide dealing with the situation has but to approve.
Below is a lot more of what we know about AHF and Gordon Brothers:
A appear at AHF Goods
Armstrong Flooring offered its wood flooring organization, AHF Items, to private equity firm American Industrial Associates for $100 million in 2018. Since then, AHF has grown to include vinyl, plank, laminate and commercial merchandise.
Dallas-based mostly Paceline, another non-public fairness organization, acquired AHF in February for an undisclosed selling price.
In January 2021, AHF diversified much more deeply into luxury vinyl tile producing when it obtained Parterre Flooring Programs for an undisclosed rate. The go set AHF squarely in levels of competition with its former proprietor, Armstrong Flooring. The acquisition was AHF’s 3rd immediately after it agreed to order a hardwood flooring plant from Tennessee-primarily based American OEM in August 2021, and its obtain of Texas-based mostly LM Flooring in 2019.
AHF employs far more than 2,300 persons with claimed revenues of far more than $400 million. Union membership is not apparent companywide, but the Teamsters depict about 400 staff, who manufacture hardwood flooring, below a number of names, including Bruce Hardwood in Beverly, West Virginia.
AHF operates eight manufacturing services, seven in the United States and 1 in Cambodia, and three domestic distribution facilities. It has facilities in Titusville, Pennsylvania (Crawford County) Warren, Arkansas Oneida, Tennessee West Plains, Missouri Somerset, Kentucky Plano, Texas and Beverly, West Virginia. The Beverly plant previously belonged to Armstrong Flooring.
AHF is led by previous Armstrong Entire world Industries govt Brian Carson, who started off with AWI in 1990 out of school. He invested 16 a long time in operational leadership roles at Armstrong Entire world Industries, like as senior vice president of North American resilient and hardwood flooring.
Carson left in 2006 to join Mohawk Flooring, an Atlanta-based mostly maker of carpet, wooden, vinyl, tile, and rugs. He returned to Lancaster County in 2019.
Armstrong Entire world Industries entered the wood flooring and cabinet company by acquiring Dallas-primarily based Triangle Pacific in 1998 for $1.15 billion. It bought the cabinets company to American Industrial Companions in 2012 for $27 million.
Armstrong Flooring was spun off from Armstrong Planet Industries in April 2016 as an impartial, publicly held company.
A appear at Gordon Brothers
Launched in 1903, Gordon Brothers has 30 offices across 5 continents and states it conducts a lot more than $70 billion well worth of inclinations and appraisals on a yearly basis. It has created that worldwide business by helping distressed corporations manage a assortment of strategic or fiscal problems, or what it phone calls “times of transformation.”
Gordon Brothers delivers guidance across all professional and industrial sectors but has grow to be specifically know for assisting retail business going as a result of personal bankruptcy, which can include things like earning limited-phrase loans or overseeing the liquidation of retailers and other assets.
Gordon Brothers has served with retail outlet closing product sales for Toys R Us, KB Toys, Hollywood Video clip, Radio Shack, Workplace Depot, Circuit Town, Sears and Sports activities Authority, between a lot of other individuals.
The business has performed a top position in some of individuals keep closings, which includes for Sporting activities Authority where by it sold stock, home furnishings, fixtures and gear at all its 450 U.S. places right after Sporting activities Authority submitted for personal bankruptcy in 2016. In other conditions, Gordon Brothers has experienced a smaller sized purpose, these kinds of as for Sears in which it only oversaw closing profits of Sears retailers in Canada.
Domestically, Gordon Brothers helped Ephrata Borough-based Doneckers liquidate belongings in 2008 when it closed the cafe, guest rooms, and dwelling décor and household furniture suppliers that experienced been an institution considering the fact that the 1960s.
In some situations, Gordon Brothers has maintained a company’s brand name following a sale of its really hard assets. Linens ‘n Points was revived as an on the net-only manufacturer after Gordon Brothers aided liquidate the chain’s 500-plus retail suppliers in 2008. And Gordon Brothers assisted Sharper Picture re-emerge as a licensing construction soon after the catalog seller of futuristic gizmos, electronics and therapeutic massage chairs sold all of its personal hard assets in 2008.