ST. LOUIS–In a press release and a letter to shareholders, Furniture Brands International called Sun Capital’s attempts to gain control of the furniture maker’s board of directors “expensive and distracting.”
Furniture Brands’ board stated that its offers to discuss business strategies with Sun Capital have been denied and that Sun’s representatives have “never suggested that they have a strategic plan that is superior to the one management is now executing successfully.”
Further, “to date, they have not offered one actionable idea or suggestion on how we might improve our business,” the release continued.
Sun Capital, which owns approximately 9.5 percent stake in the furniture maker, has made several unsuccessful bids to acquire Furniture Brands, and has nominated three candidates for the board, which will be voted on at Furniture Brands’ annual meeting on May 1.
Furniture Brands said it has offered Sun Capital the opportunity to add a single, independent person to the board, contingent upon Sun refraining from “publicly disparaging” Furniture Brands and not repeating “this costly, distracting proxy contest” before the next board meeting. That offer was denied.
