Furniture Brands International

article of furniture Brands International, Inc. (FBN) is a designer, manufacturer, wholesaler and retailer of home furnishings with external operations but mainly focusing on the newton American market. The guild sells its products under nine brands including Thomasville, Broyhill, Lane, and Drexel Heritage. The furnishing industry has suffered importantly from the sparingal downturn that started in 2008. Although macroeconomic conditions improved in the past year, given the prolonged housing crisis and weak rail line creation in the United States, customers are not notwithstanding ready to make big-ticket purchases. Housing and furniture provide likely be among the last areas to recover.

During the past five old age Furniture Brands revenues have been cut by half from $2.1B in 2007 to $1.1B in 2011. The combination of declining revenues, restructuring costs and other one-time expenses resulted in the social club recording losses of 22% in 2008, 9% in 2009, 4% in 2010 and 5% in 2011. During the same period, Furniture Brands voice price dropped by more than 85% (from $14 to less than $2 per share).

However, in the past two historic period the companys main competitors showed clear signs of recovery much(prenominal) as make revenue growth, profits and increased share prices. The mourning of Furniture Brands cannot simply be explained by the economic conditions.



Furniture Brands was created from a series of acquisitions and the company faced problematic challenges in improving its operational efficiency and rebranding its products.


Our detailed pecuniary analysis shows that the moderate cost saving strategy the company adopted after the crisis failed. The companys poor pecuniary performance, its limited access to financing combined with delayed economic recovery have put it in a distress situation which we believe might soon become extremely critical.

Should the company follow the furniture industrys moderate growth expectations it is likely that it would have to file for bankruptcy...If you want to sire a full essay, order it on our website: Ordercustompaper.com



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