Management Firm Buys Majority Stake in Krause’s:...
From Times Staff and Wire Reports
Management Firm Buys Majority Stake in Krause’s: San Jose-based Keegan Management Co. has acquired a 61.9% percent stake in Krause’s Sofa Factory, a furniture manufacturer and retailer. Under an agreement reached last month, Keegan Management acquired 1.3 million series A common shares from Krause’s for $6.1 million, and 505,040 Krause’s shares from Floyd Business Inc. for $2 million, according to a Securities and Exchange Commission filing. Krause’s used about $5 million of the proceeds from the stock sale to repay bank debt. Krause’s operates 67 retail furniture showrooms and manufactures about 75% percent of its products at its Brea plant.
