Client Profile

Founded in 1932, Kittle's Home Furnishing Center, Inc. ("Kittle's" or the "Company") is the largest and oldest independently owned furniture retailer in Indiana. The Company's stores feature a wide selection of bedroom sets, dining and dinette furniture, sofas, loveseats, recliners, home theater furnishings, as well as bedding, accessories and children's furniture. Building on its brand presence in Indiana, the Company expanded its retail presence into Ohio in 1996. Today, Kittle's has 13 retail locations operating under 6 different banners that appeal to a wide base of customers and a broad range of prices. The Company's current stores include six Kittle's Furniture stores, one Thomasville store, one Kittle's Outlet, one Kittle's Studio, three Rooms Express and one Ethan Allen store.

Situation

Like most durable goods retailers, Kittle’s was negatively impacted by the economic downturn that began in 2007. Despite management's efforts to reduce the Company's cost structure, the Company experienced reduced profitability and constrained liquidity.

Solution

SSG Capital Advisors was retained to help the Company manage its existing lender relationship and seek new capital. In a very difficult credit environment, SSG helped deliver a new working capital facility that provided the Company with sufficient liquidity to continue its growth trajectory that was reestablished in the third quarter of 2009.

footer3