Berkline Benchcraft to Liquidate
March 30, 2011,
MORRISTOWN, Tenn.-Berkline BenchCraft Holdings this morning announced that, after fully exploring its strategic alternatives, it has determined that an orderly liquidation of substantially all of the company's assets is the only viable course of action. Berkline had been pursuing a "going concern" asset sale, but was unable to find a buyer and secure needed financing on acceptable terms.
Berkline said it is disappointed by the decision to liquidate and that it deeply regrets the impact this will have on its employees, customers, suppliers and communities. The company also expressed its gratitude to each of those groups for their support and contributions to Berkline's success over the years. The company stated that it had been optimistic that a better outcome could have been achieved, and that it made a significant, sustained effort to realize that goal.
Berkline noted that the economic recession had resulted in extremely sluggish consumer demand from 2008 to the present, and that it experienced a particularly challenging fourth quarter of last year that led to a further erosion of its financial position.
Early this year, Berkline engaged a financial advisor to explore strategic alternatives and pursue a sale process, which was ultimately unsuccessful.