More Furniture Brands executives let go
More executives have gotten the boot since KPS Capital Partners formed Heritage Home Group from the former parts of Furniture Brands International.
Dan Masters has been removed as president of Lane Furniture, and Jay Reardon appears to have been removed as president of Hickory Chair, according to Furniture Today, a trade publication.
Sources inside the company also told Furniture Today that Vance Johnston, senior vice president and chief financial officer, had left the company.
The resignation of CEO Ralph Scozzafava was announced Monday by KPS, a private equity firm that specializes in turning around failed manufacturers. KPS’ purchase of Furniture Brands was approved by U.S. Bankruptcy Court on Friday. Part of the company’s turnaround strategy is to replace top management.
Lane Furniture had been viewed as one of Furniture Brands’ weaker assets. When Furniture Brands first filed for bankruptcy protection in September, the company that it initially worked with on a reorganization plan, Oaktree Capital Management, intended to spin off Lane rather than acquire it.
In an interview with Furniture Today, Masters said he had “no hard feelings” toward KPS but indicated he thought Scozzafava had a role in his dismissal.
“They (KPS) are straight-up people, and the decision was made based on whatever input they got from Ralph as it relates to me. They came in today and have taken control and are moving quickly and decisively,” he told the publication.
Masters joined Lane in May 2012 as vice president of business development and was named president of the company in August 2012. He previously was president of Hekman Furniture and held executive positions at Riverside Furniture, Flexsteel Industries and Richardson Brothers.
Furniture Today reported that when a reporter called Hickory Chair’s corporate office to speak to Reardon, who has been president of Hickory Chair for 17 years, the reporter was told that Reardon was no longer at the company.