FFO Home (“FFO” or the “Company”) operated a chain of retail furniture stores concentrated in secondary and tertiary markets and owned by a private equity sponsor. The onset of COVID-19 forced temporary store closures and created severe supply-chain disruptions that limited product availability.
The resulting decline in sales and liquidity pressures triggered a default under the Company’s senior credit facility, leading to a Chapter 11 filing in Delaware. During the process, various strategic options were evaluated, including third-party interest and potential debt transactions.
A strategic buyer ultimately purchased the senior secured debt and credit-bid to acquire the business. The transaction enabled continuity of operations under new ownership during a period of unprecedented disruption for retail home furnishings.
Note: This transaction was completed by Managing Director at prior firm.
