Exhibit 99
XXXX FURNITURE CORPORATION TO ACQUIRE
THE XXXXXXXX GOLD CO.
_________
FAST-GROWING PRIVATE FURNITURE MANUFACTURER SERVES LEADING RETAILERS
McLEAN, VA, September 28, 1998 -- Xxxx Furniture Corporation (NYSE:ROW) has
entered into an agreement to acquire The Xxxxxxxx Gold Co., a privately-owned,
fast-growing, upholstery furniture manufacturer serving some of the nation's
leading specialty retailers, it was announced today by X. X. Xxxxxxxx, Xxxx'x
Chairman, President and Chief Executive Officer. The acquisition will make Xxxx
one of the nation's leading upholstered furniture manufacturers.
"Our industry has been undergoing changes in line with consumers' new
lifestyles, and the success The Xxxxxxxx Gold Co. enjoys in the broad acceptance
of its design and craftsmanship is perhaps one of the best examples of this
trend," said X. X. Xxxxxxxx. "We are excited about having Xxxxxxxx Xxxx and Xxx
Xxxxxxxx, its founders, join our corporate family. It represents an important
extension of Xxxx'x own successful program to meet the challenges facing our
industry."
"Joining Xxxx will provide our company with the resources we need to better
serve our clients and their customers, and to enable our Company to continue our
growth in an orderly fashion so that we can reach the next level," said Mitchell
Gold, President and CEO of the company that bears his name. "Xxxx is an
outstanding company, and as its record shows, it knows what has to be done to
succeed in today's market. That's a key reason we decided to team up with Xxxxx
and Xxxx."
The transaction, which is subject to Xxxx Xxxxx Xxxxxx approval, involves
an initial purchase price of $13 million, consisting of cash and a convertible
debenture, plus an earn-out provision based on a performance period not to
extend beyond November 30, 2003. A copy of the acquisition agreement will be
filed by Xxxx with the Securities and Exchange Commission, Washington, DC.
Started in 1989, The Xxxxxxxx Gold Co. is headquartered in Taylorsville, NC
and has been among Inc. magazine's 500 list of the country's fastest-growing
private companies. The results speak for themselves. In an industry that on
average posts at best a 5-8% annual gain, The Xxxxxxxx Gold Co.'s sales for year
ended April 30, 1998 were up 70%, and the year before that they had risen 57%.
(Xxxx, for its part, has been posting well above average industry shipment gains
of 35% this year.) Among The Xxxxxxxx Gold Co.'s leading customers are Crate &
Barrel, Pottery Barn and Restoration Hardware.
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Xxxx -- 2
Messrs. Gold and Xxxxxxxx will continue to direct and operate The Xxxxxxxx
Gold Co. as a wholly-owned subsidiary of Xxxx Furniture. Mitchell Gold will
become a member of the Board of Directors of Xxxx Furniture.
In anticipation of increased demand, The Xxxxxxxx Gold Co. is building a
267,500 square-foot manufacturing facility on a 70-acre site in Taylorsville,
NC. Upon completion in November, production and warehouse facilities will then
total 330,000 square feet. The Xxxxxxxx Gold Co. currently has over 300
employees, up from approximately 200 a year ago.
The Xxxxxxxx Gold Co. produces up styled upholstered sofas and chairs. It
supports its marketing with cutting edge advertising that appears in such
shelter magazines as House and Garden and Metropolitan Home, featuring sensual
models, the slogan "Some People Just Know How to Live," and invariably Mr.
Xxxx's pet bulldog, Xxxx, which has become something of an icon in the furniture
trade.
Xxxx Furniture Corporation is a major manufacturer of medium-priced,
quality upholstered and wood furniture, which is sold throughout the U.S. and
abroad under the Xxxx and The Wexford Collection brands. The Xxxxxxxx Gold Co.
is an upper end, upholstered manufacturer which is sold under the Xxxxxxxx Gold
brand and is credited with pioneering a system for slipcovered furniture.
Statements in this press release concerning Xxxx'x business outlook or
future economic performance, anticipated profitability, revenues, expenses or
other financial items; together with other statements that are not historical
facts, are "forward-looking statements" as that term is defined under Federal
Securities Laws. "Forward-looking statements" are subject to risks,
uncertainties and other factors which could cause actual results to differ
materially from those stated in such statements. Such risks, uncertainties and
factors include, but are not limited to, the acquisition not being completed,
cost savings and revenues after the acquisition may be lower than expected,
industry cyclicality, fluctuations in customer demand and order patterns, the
seasonal nature of the business, changes in pricing, and general economic
conditions, as well as other risks detailed in Xxxx'x filings with the
Securities and Exchange Commission.
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Contact: Xxxxxx X. Xxxxxx
Secretary-Treasurer
(000) 000-0000
Xxxxxx X. Xxxxxxx
Anreder Hirschhorn Silver and Company
(000) 000-0000
