Rowe Furniture Strikes Lease-Back Deal
Rowe Furniture has sold two of its facilities in a deal that strengthens the upholstery maker by reducing debt.
August 2008
A Rowe Furniture spokesman confirmed a newspaper report Friday that the company has sold two properties, including its Elliston, Va., factory, as part of a lease-back arrangement with the property’s new owner, NL Ventures.
“It’s just a sale of the land and the physical structure,” said Spokesman Saverio Mancina.
The Roanoke Times report Friday said the company’s Salem, Va., frame shop was included in the sale. The company employs 689 people in Ellison and another 105 in Salem. Mancina told the newspaper the lease-back deal strengthens Rowe by reducing debt and interest payments. The company retains ownership of machinery and inventory in the facilities that continue to operate as usual.
“It’s just a sale of the land and the physical structure,” said Spokesman Saverio Mancina.
The Roanoke Times report Friday said the company’s Salem, Va., frame shop was included in the sale. The company employs 689 people in Ellison and another 105 in Salem. Mancina told the newspaper the lease-back deal strengthens Rowe by reducing debt and interest payments. The company retains ownership of machinery and inventory in the facilities that continue to operate as usual.
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