Nov. 24—RANDOLPH COUNTY — The various raw materials and remaining equipment and other tangible property of Klaussner Furniture Industries Inc. cost the company nearly $19 million but are likely to bring a small fraction of that when they are sold, according to a court filing this week.
Focus Management Group, the court-appointed receiver overseeing Klaussner's liquidation, filed extensive listings in N.C. Business Court of the company's known non-inventory assets and raw materials, as well as pending bids received from potential purchasers, where there are bids.
Raw materials include such things as fabric, leather, bags and plywood, and a single page lists the various bids for them.
The company has almost $11.4 million worth of raw materials and has received bids so far totalling less than $2 million, according to the court filing.
Non-inventory assets is a broad category, everything from office chairs to factory machinery and cars and trucks, and that listing is 133 pages long. There is about $7.2 million worth of non-inventory assets, many for which no one has submitted bids.
Hilco Fixed Asset Recovery signed an agreement with Focus Management on Nov. 1 guaranteeing that all of the sales would generate at least $2.15 million. If sales exceed that, Hilco gets to keep the first $3.3 million, and it can keep up 75% of any additional sales.
Asheboro-based Klaussner Furniture Industries closed without warning Aug. 7 after 60 years in business. Klaussner ownership said the company's lender unexpectedly ceased providing capital to keep operating.
In late August, Bank of America filed in N.C. Business Court, seeking a receivership to oversee liquidation of Klaussner's assets. Klaussner owed the bank a total of more than $21 million.
In October, a judge approved a deal arranged by Focus Management for VPC Group USA, a producer of foam and fiber material, to purchase Klaussner subsidiary Prestige Fabricators for about $7 million. Prestige operated two plants in the Asheboro area producing foam for upholstery.