Deal rescues Norwalk
New owners resume production
By Jay McIntosh -- Furniture Today, August 11, 2008
NORWALK, Ohio — Two investment firms have agreed to purchase the assets of Norwalk Furniture and the company has fully resumed operations, officials announced last week.
IRG Capital Group, an affiliate of Industrial Realty Group, in partnership with Blackbird Capital Partners has signed a letter of intent to purchase Norwalk's assets. Terms were not disclosed. The sale is expected to close Aug. 15.
Norwalk had suspended production July 21, but resumed some operations last week to fill existing orders. Its acting CEO, Dominic Aversa, said the company's bank, Dallas-based Comerica, had cut off the company's credit. Later, Comerica agreed to negotiate, according to Norwalk officials.
Ohio's state government provided a $2 million low-interest loan to facilitate the sale and governments in the Fulton, Miss., area also provided matching loans, according to Norwalk. Comerica also has agreed to continue funding the company.
Charles Rowe, president of Akron, Ohio-based IRG Capital Group, will be interim CEO of Norwalk while a permanent replacement is sought. Rowe has been CEO of The Sharon Cos. Ltd. in Akron and QualServ Corp. in Kansas City, Mo.
In addition, the Gerken family, which previously owned and managed Norwalk, “will maintain some involvement” with the company, but the degree of that involvement has not been established yet, said Joe Mosbrook, a company spokesman. “As you know, it's a relationship business, and the Gerkens definitely want to remain a part of Norwalk furniture to maintain those relationships and ensure that the tradition their family has established for over 100 years will stay in place.”
California-based Industrial Realty Group is one of the largest full-service redevelopment companies in the United States.
Blackbird Capital Partners is a private investment firm affiliated with Blackbird Capital Group in Cincinnati.
