The B2B end-to-end e-commerce solution provider GigaCloud Technology has announced that they have entered into a definitive agreement as a ‘stalking horse bidder’ to acquire substantially all the assets of Noble House Home Furnishings and some of its brand subsidiaries, valued at $85 million, to facilitate the Chapter 11 bankruptcy proceedings of Noble House.
Noble House is a distributor, manufacturer, and retailer of indoor and outdoor home furniture with a distribution network across various e-commerce channels, including partners like Amazon, Walmart, Costco, Wayfair, Overstock, Target, and Home Depot, fulfilling direct consumer orders from its distribution centers. Family-owned since its establishment in 1992, the company designs, markets, and sells products under various brands, including Christopher Knight Home, NobleHouse, LePouf, OkiOki, Best Seller, and GDFStudio, while also leasing offices, warehouses, and locations in Texas, California, and Georgia.
Larry Wu, Founder, Chairman, and CEO of GigaCloud, stated: ‘With over 8,000 SKUs and a robust supply chain system, we believe Noble House will significantly enhance our 1P and 3P business operations, complementing our already diverse product offerings. Furthermore, we believe GigaCloud’s B2B platform will enhance the efficiency of Noble House’s operations and expand Noble House’s sales channels. With a strong financial balance sheet and an integrated market ecosystem, we are confident that GigaCloud has the resources and management capabilities to stabilize and grow Noble House’s business operations in the future.
Noble House filed for Chapter 11 bankruptcy protection on September 11 in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (“Bankruptcy Court”). According to reports from Bankrupt Company News, long-term debt is listed at $74 million, and business debt stands at $65 million.
There are between 1,000 to 5,000 creditors listed in the initial filing, estimated assets ranging from $100 million to $500 million, and estimated debts ranging from $100 million to $500 million. In the bankruptcy petition, the filers noted that the company increased its sales during the COVID period, reaching $671 million in 2021 and $491 million in 2022, with expected lower revenues in 2023. Reported income in 2021 was $7 million, but it decreased to a loss of $34 million in 2022.
The asset purchase agreement is subject to customary closing conditions, including certain court-ordered requirements. The asset purchase agreement must also comply with increasingly higher bids that Noble House may receive during the auction process.
Source: goviet.org.vn
