by Rachel Butt
Arhaus LLC has appointed GlassRatner Advisory & Capital Group as chief restructuring officer, two sources close to the situation said. This complements the co-advisory roles of Piper Jaffray and Candlewood Partners to explore a refinancing.
The Ohio-based furniture maker has 60-plus stores nationwide and also sells high-end wares online. It has been facing account receivable issues on delinquent accounts and squeezed margins, as Debtwire previously reported.
Arhaus recently saw a management shakeup, where CEO Adrian Mitchell stepped down just 13 months after he took the helm. Company co-founder and chairman of the board John Reed took over as chief executive, as per an announcement in early March. Mitchell was a McKinsey & Co. veteran and had worked for Crate and Barrel and Target before jumping to Arhaus; whereas Reed and his father started the company back in 1986. The company enjoyed steady growth prior to 2016, which attracted LA-based private equity firm Freeman Spogli to make a minority investment early 2014.
Calls to Arhaus, GlassRatner, Freeman Spogli, Keybank, Piper Jaffray and Candlewood were not returned.