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Former Lane Furniture plant sold for $1.45 million

lane-furniture-logoUnited Furniture Industries has bought the 475,000-square-foot former Lane Furniture Industries in Verona for $1.45 million.

Doug Hanby, United chief financial officer, said in a news release on Monday that the facility will used as a manufacturing facility for stationary furniture, and hopes to open it during the first quarter of next year.

United Furniture Industries and McCormick Drive LLC had a bidding war for  the facility, which was a former office and warehouse for Lane.

Earlier this year, Heritage Home Group – whose brands included Lane, Broyhill, Thomasville, Drexel Heritage, Maitland Smith and others that had been part of the now-defunct Furniture Brands International – said it was auctioning 17 Thomasville and Lane properties, mostly in North Carolina, Virginia and Tennessee. The facilities are former manufacturing plants, warehouse and distribution centers and administrative buildings.

United, which employs about 1,500 in northeast Mississippi, initially bid $1.2 million for the facility in Verona, a suburb of Tupelo, after filing in U.S. Bankruptcy Court for Delaware an objection to McCormick’s offer.

Heritage Home Group was formed after KPS Capital Partners bought most of the assets of Furniture Brands for $280 million in a bankruptcy court-approved deal in December.

HHG owns a vacant 430,200-square-foot facility in Saltillo and a 715,951-square-foot plant in Tupelo, which remains open. It leased a 494,813-square-foot distribution center in Wren.

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