$320-Million Plan Was Derailed Earlier : Wickes Will Sell Its Lumber Unit to Managers

Wickes Cos., a furniture and home-improvement retailer, said Thursday that it will sell its lumber business to managers for $320 million, a plan that was derailed earlier this year.

Wickes Lumber, based in Vernon Hills, Ill., is one of the nation’s largest home-improvement retailers, with 225 outlets nationwide and 1987 revenue of about $1.1 billion.

Plans to sell the division to management fell through in January when the management group was unable to obtain financing for the deal.

Wickes said financing is being provided by General Electric Co.’s General Electric Capital Corp. subsidiary.

Santa Monica-based Wickes, which staged a comeback from bankruptcy three years ago, has been buying and selling assets to redirect the company, but not always to the praise of Wall Street. The chain of home-improvement, apparel and food and drug stores filed for bankruptcy protection in 1982.

Wickes Chairman Sanford C. Sigoloff argues that the company’s restructuring--it has spent $2.5 billion on acquisitions since emerging from bankruptcy--is moving along and that investors will see the results in long-term appreciation of the stock price.

Last October, Wickes announced its plan to sell the lumber division plus two other businesses, Kayser-Roth Apparel, whose products include Catalina and Cole of California swimwear, and Kayser-Roth Hosiery, the maker of No-Nonsense panty hose and ladies’ Burlington stockings.

A company spokeswoman said Wickes is negotiating to sell the hosiery division, but no buyer has been found for the apparel business.

While the company has sold some assets to reduce its debt, it has also been interested in acquisitions. In November, 1986, it backed away from a $1.7-billion bid for Lear Siegler Inc., but completed a $1.6-billion takeover of fabric maker Collins & Aikman Corp.

Wickes shares Thursday rose 25 cents to $10.625.

Some $290 million of the purchase price of the lumber unit will be paid in cash, with the balance in notes payable in 10 years.

In addition, Wickes said it will receive a warrant to buy 15% of the purchasers’ common stock after five years. The warrant would be surrendered if the $30-million, 10-year note is prepaid within that time.

The transaction is expected to be completed at the end of next week.