Thornwood Furniture Files Chapter 11

Posted by MCC on June 21st, 2010 at 07:00am

In an effort to obtain longer terms for its debt, Thornwood Furniture Mfg. filed for Chapter 11 this month. Although, the wood furniture manufacturer says that the company is financially stable. Craig Thorn who owns the majority of the company says they hope to be able to emerge from bankruptcy within three to six months.

The company still employees 250 in manufacturing which is in keeping with the lean staffing they employ for the summer months. It’s also continuing to work at developing new products and delivering goods. Marshall and Isley is the company’s largest lender, Thornwood’s still owes them around $12 million which include almost $7 million that was payable in March.

Thorn stated that the company filled Chaper 11 to have the chance to restructure the debt and get longer terms. He said that the value of the company is over two times what is owed to Marshall and Isley. “I frankly think that operating companies that have more than twice the value of their debt are relatively prudent today in the market,” Thorn said.

Under Furniture News