The decorative lighting industry can breathe a collective sigh of relief as rumors regarding legendary lighting manufacturer Quoizel have proven to be unfounded. Whispers of financial troubles began circling earlier this week; however, NBG Home – the parent company to lighting manufacturers Quoizel (acquired in 2019), DSI Lighting, Jimco, and other home décor categories – put rumors to rest by releasing a statement revealing that it has entered into a restructuring support agreement with the lenders holding the majority of its debt, comprised of credit funds and accounts managed by KKR and funds managed by Silver Point Capital, L.P. Under the agreement, NBG Home will receive $30 million of new capital and will position itself for future growth by reducing its long-term debt by approximately $350 million.
NBG’s restructuring should be complete within 60 days and the company will continue operating as usual throughout the process without disruption to its customers, vendors, and employees. The sponsors of the restructuring plan – KKR and Silver Point – plan to acquire NBG unless a higher or better bid emerges.
“Today marks the beginning of our next chapter. I believe this is the best path forward for our hundreds of employees, vendors, and customers and am pleased that NBG Home’s lender group and equity holders have such strong confidence in our team. Their strategic partnership will support our ability to continue growing our business and providing innovative, on trend products to our retail partners that will fill homes with style and functionality,” said Hope Margala, President & CEO of NBG Home.
“The ongoing effects of the pandemic have impacted companies across all sectors, including home décor,” Margala continued. “For us, supply chain disruption led to our key customers having too much inventory, which meant lower than anticipated demand for our product. In addition, we had to incur freight costs over three times historical averages. The decisive action we are taking today will help us to quickly return to positive growth. After conducting an extensive review of all strategic alternatives available to us, we are confident that this path will position us for long-term success.”